PortlandMetroAutoInsurance.com works directly with 12 highly rated auto insurance companies to make your Portland auto insurance shopping fast and easy with all the work on us. Our secure online application links directly to their computer system to give you side-by-side rate comparisons all in one place. You won’t have to leave our site or enter your information  multiple times to get competing quotes. Let Portland auto insurance agents fight for your business. Here’s how it works.

• Fill out one application online and get instant competing rates
• Compare your Portland auto insurance rates side-by-side
• Purchase the policy that saves you the most money

Compare real rates right from the source

PortlandMetroAutoInsurance.com proprietary technology links directly to the auto insurance rating engine of each insurance company we work with. When you submit your application through us, we receive accurate competing quotes for you to compare straight from the same place you would if you applied to each company individually. Most site give ballpark estimates, We provide real time rates.

Buy securely online or call your local agent

We provide you with the tool to do everything online. Learn about the companies we represent, complete applications, and pay for your policy. If dealing with an agent is something you prefer, theres nothing wrong with that. Our main goal is to help you find the best company with the best rates for your situation and once you found that company we will be delighted to set you up with an agent that's in your neighborhood.

Choosing from our 13 A-rated insurance companies

In order to find the best posible Portland auto insurance rates for you, you need to get quotes from all the major insurance companies. We have made this all possible for our Portland residents by teaming up with 21st Century, Electric Insurance, Esurance Auto Insurance, The Hartford, Infinity, Liberty Mutual, MetLife Auto Insurance, Permanent General Assurance Corporation (The General), Progressive, QBE Insurance, Safeco, Travelers Insurance, and Unitrin Direct.

Oregon Insurance Coverage:

Bodily Injury Liability: $25,000/$50,000 Limit
*Property Damage Liability: $20,000 Limit
Uninsured/Underinsured Motorist Bodily Injury: $25,000/$50,000 Limit
Personal Injury Protection: $15,000 Limit
*Effective January 1, 2010

The state of Oregon follows a Tort system meaning someone must be found to be at fault for causing the accident, and that person and their insurance company is responsible for all the damages. You should be aware that the details of a tort system vary from state to state.

Personal Injury Protection (PIP) helps pay for “reasonable and necessary” medical expenses for you and your passengers. Oregon state law requires a minimum Personal Injury Protection coverage of $15,000.

To help protect against damages caused to you and your passengers by an uninsured driver, Oregon state law requires a minimum Uninsured/Underinsured Motorist coverage of $25,000 per person up to a total of $50,000 per accident for any bodily injury caused by the uninsured and/or underinsured driver.

When you get a quote at PortlandMetroAutoInsurance.com, our coverage page will give you the option of choosing the Minimum State Required package, more wide-ranging coverage packages, or you can customize every limit and deductible to fit your needs. If that is too complicated, PortlandMetroAutoInsurance.com‘s insurance agents are licensed in Oregon and available to help you all the way through the quote and purchase process.

What Pay-Per-Mile Coverage Covers

Also known as pay-as-you-drive (PAYD) or usage-based insurance, this form of auto liability protection essentially determines part or most of your premiums based on your driving habits. In its simplest form, pay-per-mile insurance only takes the number of miles you drive into account. In its most complex form, it assesses how much, when, where, and even how you drive.

Depending on your insurance company, your driving habits will be tracked by either installing a small device which plugs into your car, by using your global positioning system (GPS), or by simply having an insurance company representative look at your odometer readings.

The plug-in device allows your insurer to record when, how much, and how fast you drive, as well your braking habits. But, it doesn’t record where you drive. GPS-based systems, however, can do this, along with recording how often and when your drive. But, they can’t assess your speeds and braking tendencies.

Who Needs Pay-Pay-Per Mileage Coverage

Generally speaking, you could see a reduction in your premiums through pay-pay-mile insurance if you:

• Don’t drive much.
• Avoid driving during peak traffic hours.
• Drive in uncongested areas.
• Practice safe driving habits.

The more that apply to you, the greater the chances you could benefit from this coverage, and the higher your potential savings.

Where to Get Pay-Per-Mile Coverage

While this type of coverage has been spreading fairly quickly throughout the country, it’s still only available in some states and through a few insurance companies. If your carrier doesn’t provide the coverage, do an online search for insurers that offer pay-per-mile insurance, and then see if they allow this program in your state. Or, just call the toll-free numbers provided by insurance companies, and ask a representative. Your state insurance department may also be a good source of information on this matter.

How Much Pay-Per-Mile Coverage Costs

While one major study showed that an estimated two-thirds of Americans households would save about $270 per car by using this type of insurance, it’s not the best choice for everyone. In fact, if you don’t fit any or most of the categories listed above, your rates could increase, based on your driving habits. Plus, depending on the insurer, you may have to pay for the monitoring device or service.

But, for drivers who rarely use their cars, pay-per-mile coverage could be a blessing, especially for those with low incomes. Insurance companies, meanwhile, realize a reduction in the miles driven per customer leads to a disproportionate increase in their profit margins, so these programs are money-makers for insurers.

And, from an environmental view, a decrease in car use means fewer emissions entering the atmosphere.

What Personal Injury Protection Covers

PIP is commonly referred to as “no-fault coverage,” and in some states, such as Colorado, it’s also known as Medical Payment Insurance or Med-Pay.

PIP, on average, covers about 80% of the following expenses:

• Medical costs
• Rehabilitation costs
• Funerals
• Lost wages
• Additional PIP

Additional coverage options depend on the insurance laws of your state. Check with your insurance agent for more information.

Who Needs Personal Injury Protection

PIP is mandatory if you reside in one of the following states :

• Colorado
• Delaware
• Florida
• Hawaii
• Kansas
• Kentucky
• Massachusetts
• Michigan
• Minnesota
• New Jersey
• New York
• North Dakota
• Oregon
• Pennsylvania
• Texas
• Utah

Even if PIP is optional in your state (some do not offer it), you still might want to consider adding it to your insurance portfolio. PIP, on average, covers 80% of your medical related expenses (contingent on your state’s coverage limits). And, because of its no-fault structure, assures you of quick payments.

PIP protects the following:

• You, the policyholder, and all relatives living in your house
• All of your passengers (this includes non-family)
• Drivers authorized to operate your vehicle
• You and family members if injured while riding in someone else’s vehicle
• If you’re a pedestrian struck by a vehicle (not offered in all states)

PIP does not cover:

• Recreational vehicles
• Farm equipment
• Motorbikes
• Intentional injuries while driving
• Accidents related to felonies

Where to Get Personal Injury Protection

Most, but not all, insurance companies sell personal injury protection?so you might have to call around. Before inking your name to a policy, be sure to do some comparative shopping; every company offers different rates, and this way you’ll be able to find a policy that meets your budget and needs.

How Much Personal Injury Protection Costs

Costs are contingent upon your state of residence. If you live in a state with mandatory PIP, the minimum amount of coverage has already been decided; if you live in a state where it’s optional, the choice is yours on how much coverage to carry. You’ll find limits, depending on state, range from $1,500 to $250,000.

When deciding on coverage amount, consider the following:

• How much health insurance do you currently have? If you carry enough to cover your medical costs, you might have overlap, requiring only a minimal amount of personal injury protection.
• Do you often drive with passengers? If yes, consider protecting yourself with a higher amount of coverage, because as the driver you are responsible for the safety of your passengers.

NOTE: Keep in mind that you must cover all the vehicles on your policy when you buy personal injury protection, so expect a higher rate if multiple vehicles are listed on your policy.

This does not cover maintenance caused by normal road use, such as replacing a muffler or changing the oil.

Benefits of Being Covered

Physical damage coverage protects your wallet from the nuances of fate. Regardless of how safe you drive or how careful you park, you still can’t predict some rube keying the driver side of your car, or gumball-sized hail tumbling out of the sky and dimpling the hood of your vehicle, or getting sideswiped by a speeding taxi.

If you lease your vehicle or carry a loan, physical damage coverage, in most cases, is mandatory. Otherwise, it’s optional if you own your car.

If you have the luxury of option, it’s highly recommended to carry physical damage coverage if you own a vehicle with high Blue Book value. On the other hand, if you drive an old beater that’s valued at less than $3,000, you may want to think twice about covering it. In some instances, depending on the damage, it may be cheaper to replace than to repair.

Types of Physical Damage Coverage

Collision Coverage

This coverage protects you from:

• Any collision with another vehicle, regardless of fault
• Any single car accident, such as spinning out on ice and flipping over
• Any damage caused by driving over a pothole

Coverage is usually offered with a deductible ranging from $250 to $1,000. A deductible is the amount of repair costs you pay out of your pocket. For instance, if you have a $2,000 repair bill and a $250 deductible, your insurance company would pay $1,750. So if you opt for a low deductible, your premium (insurance cost) will be higher. And vice versa.

The advantage of this coverage is that you’ll be financially protected regardless of fault.

Comprehensive Coverage

This pertains to any sustained damage that’s not vehicle related. Or, in other words, protects you against the inadvertent. Some examples include:

• Hitting a deer
• A tree limb crashing down upon your car
• Vandalism
• Flooding
• Earthquake
• Ice storm
• Explosion
• Cracked windshield, depending on your state of residence

Though comprehensive coverage is optional if you own your vehicle, carrying it is advisable. It becomes especially beneficial following a natural disaster, such as a flood or tornado, providing needed financial comfort during an otherwise difficult circumstance.

You can choose deductible amounts of $250, $500 and $1,000. The higher the deductible the lower your premium. The choice is yours. If you live in a city that is considered a high risk area for theft and vandalism, expect to pay a slightly higher premium.
Fire and Theft Coverage

Fire and theft coverage falls under comprehensive insurance; all the more reason for maintaining that coverage.

Some insurance carriers do offer Fire and Theft With Combined Additional Coverage (CAC), but it only applies to certain heavy trucks. To qualify you must have either liability or collision insurance.

This policy protects you in the event of:

• Fire
• Theft
• Wind damage
• Hail damage
• Flooding
• Theft
• Vandalism
• Impact with wildlife
• Explosions
• Lightning damage
• Damage during transportation

When selecting a deductible for Fire and Theft With CAC you must also provide the estimated value of your truck, taking into account age, condition and any attached equipment.

Property damage liability insurance covers you in the event that your car damages someone else’s property. For instance, if your teen driver accidentally backs into your neighbor’s parked car, your property damage liability insurance will pay for the repairs. If you run over someone’s purebred dog and are found at fault, your property damage liability insurance can cover the dog, too.

Property damage liability is a requirement in most states. Even if it’s not required, auto lenders may require you to have this insurance. Without property damage liability insurance, you will be forced to pay out of pocket for the damages caused by your vehicle, and may even get sued for your assets.

What Property Damage Coverage Covers

Property damage liability insurance takes effect when your vehicle is involved in an accident and found at least partially at fault for causing damage to another person’s property. It will not cover your own property.

Exactly what your liability insurance covers varies according to your policy and amount of coverage, so read the contract carefully or ask your insurance agent. You may also have a deductible, or amount that you are responsible for paying out of pocket. Basically, property liability insurance covers:

Repair of property you were found at fault for damaging, including parts.

Replacement of property you were found at fault for damaging, including personal items that were damaged secondarily (for instance, items left inside a car that was totaled).

Combined Single Limit or Split Limit Coverage

You can choose to have either Combined Single Limit (CSL) coverage or split limit coverage. CSL is a single amount of coverage that can be applied to either bodily damage or property damage, or both. For example, let’s say you have a CSL with $500,000 to cover both bodily and property damages. If you knock down your neighbor’s brand-new $10,000 fence, then you will be covered under the CSL.

Split limit coverage allows you to split the limits between bodily and property damages. You may decide you need $100,000 worth of bodily damage and $5,000 worth of property damage coverage. If you hit that $10,000 fence, you will have to pay the extra $5,000 out of pocket; you can’t take the extra coverage out of your bodily damage portion.

Whichever way you go, be sure you have adequate coverage.

Who Needs Property Damage Coverage

Everyone should have property damage liability insurance, especially if you own a home or have other assets that you can be forced to liquidate in the event of an accident. Having this insurance protects your other assets.

However, not every state requires this insurance. Some states offer an expensive alternative, allowing you to deposit a bond worth tens of thousands of dollars with the state government. For instance, in Ohio you have to post a $30,000 bond with the State Treasurer. Other states, like California, require you to leave a similar amount in cash with their motor vehicle department.

Where to Get Property Damage Coverage

Obtain this coverage when you buy your auto insurance. All auto insurance companies offer property damage liability, along with bodily damage coverage.

How Much Property Damage Coverage Costs

Everyone pays a different amount for property damage liability insurance. Insurance rates are affected by:

• The year, make and model of your vehicle; newer cars cost more.
• Your driving record (tickets increase the rate) and age.
• How many miles you drive annually.
• The amount of coverage required by your state’s laws.
• The amount of coverage you request.
• How long you have been with the insurance company; most offer loyalty discounts after a few years.

For example, a driver with a car a few years old who has a clean driving record could pay $110 per year for $25,000 worth of property damage liability coverage, in addition to other insurance costs. To find out what your rate will be, obtain your own quote from several companies.

This insurance offers financial coverage for those who rent a car; it differs from rental car reimbursement insurance, which pays for the use of a rental car while your vehicle is being repaired following an accident.

What Rental Insurance Covers

Rental car agencies offer all sorts of protection for those who rent their vehicles, including those listed below. However, the types of coverages and their restrictions and conditions vary by the agency.
Loss Damage Waiver (LDW)

Sometimes known as a collision damage waiver (CDW), this protection acts like the comprehensive and collision coverage associated with personal car insurance policies. It covers the cost of damages done to your rental vehicle due to an accident, storm, fire, or act of vandalism, as well as the replacement cost if your vehicle is stolen. Some LDWs pay for towing expenses, too.

However, your coverage may be nullified if you caused an accident by failing to obey the local traffic laws.
Liability Coverage

Just like your liability coverage on your personal policy, this protects you against the expenses associated with property or bodily injury damages you cause to others. The rental agency will automatically give you liability coverage that’s equal to the state’s minimum requirements. However, those limits usually are low and can easily be exceeded in an accident, so this coverage gives you added protection.
Personal Accident Insurance (PAI)

This insurance is similar to the medical payments coverage found with personal auto insurance policies; it pays for the costs associated with injuries or deaths that you or your passengers sustain in an accident, up to the limit stipulated. Depending on the circumstances, your health or life insurance policy may also pay for some of these costs.
Personal Effects Coverage (PEC)

This coverage pays the cost of replacing items stolen from your rental car.

Who Needs Rental Insurance

Before you decline or accept the rental agency’s insurance, you should consider the situation from a few angles.

Personal Auto Insurance Policy

If you have a full personal auto insurance policy with adequate coverage limits, you may not need car rental insurance; everything it offers may already be covered in your policy. That’s except for the PEC, which may be covered by your homeowner’s policy. Check your policies, though, to make sure they apply to the use of rental vehicles, especially if you’re using the rental for business purposes.
Credit Card Insurance

Many credit card companies offer free rental insurance if you use their card to book the car. The extent of the coverage varies widely by the provider, but most only offer collision and theft coverage. Some credit card companies won’t offer protection on expensive rental models, too, so be sure to know exactly what coverage your card provides. Also, this sort of insurance is usually considered to be secondary, meaning it only kicks in if you don’t have any other insurance coverage in place.
Rental Car Insurance

Unlike with personal auto policies, you generally won’t have to pay a deductible with rental insurance. Plus, since you won’t be filing a claim with your carrier, you won’t be facing a possible premium increase. And, rental insurance can be simpler for you to handle, as you won’t have to deal with both the rental agency and your insurance company.

But, as discussed below, rental insurance can be expensive?sometimes costing as much as the base price of renting the car. And, your rental car insurance may be voided if you allow anyone else to drive the vehicle.

Note: Those traveling abroad should check with their insurance company, credit card issuer, or rental agency to see if the coverages provided by each apply to driving in foreign countries.

Where to Get Rental Insurance

Should you decide on using the rental agency’s insurance, you can select the types of coverages you want at the rental agency counter. But, depending on the agency, you may also be able to do this in advance when you make the reservation.

How Much Rental Insurance Costs

Rental coverage fees vary by the agency, but generally can be found for no more than the following per-day amounts:

• LDW: $20
• Liability: $15
• PAI: $5
• PEC: $5

Keep in mind you can just purchase the protection you need; you’re not forced to accept all the coverages the rental agency offers.

What Underinsured Motorist Coverage Covers

Coverage comes into play when the negligent driver’s insurance can’t cover your costs. For example, if the at-fault driver only has $25,000 in bodily injury coverage, and you’ve accrued $43,000 in hospital costs, your underinsured motorist policy will pick up the $18,000 difference?provided, of course, it does not exceed predetermined limits.

Because some states mandate UIM and others offer it as an option, limits are contingent upon state laws. For more information, contact your local insurance agent or the Department of Motor Vehicles.

In the event of an accident, UIM will cover:

• Medical costs
• Lost wages
• Rental car reimbursement (optional)
• Property damages (in some states)

Who Needs Underinsured Motorist Coverage

If you’re unsure whether your state mandates UIM, call your local insurance agent or your state’s Department of Insurance. If it is an option, you should strongly consider UIM coverage if you currently carry a limited health insurance plan.

Those who are covered under this policy include:

• The policy holder
• Authorized drivers
• Passengers

Where to Get Underinsured Coverage

You can purchase UIM from any reputable insurance carrier. But before buying, especially if it’s an option, be sure to compare quotes from a variety of carriers. You’ll find comparative shopping also has its benefits in the insurance world. Don’t, however, let cost be your only criteria. Be sure the policy you’re checking into provides adequate protection.

How Much Underinsured Motorist Coverage Costs

Fortunately, the cost of UIM is not prohibitive. It generally costs around 10% of your entire car insurance premium. The amount of coverage you see fit depends on your current health insurance plan.

For example, if you carry maximum coverage, you only need a limited UIM policy; otherwise, you’ll be paying for two plans with overlapping medical coverages. However, if you carry an insurance policy with limited coverage, you’ll then want to maximize, if possible, your UIM protection because UIM will not only cover medical costs, but also wages lost due to injury.

What Uninsured Motorist Coverage Covers

Coverage kicks in when when one of the following has been determined:

• The negligent driver carries zero insurance.
• The negligent driver carries insurance, but below the state’s required minimum.
• The negligent driver’s insurance company lacks the finances to cover your injuries and/or damages.
• You’re the victim of a hit-and-run driver.

Because there’s no national mandate for UM (some states require it, others offer it as an option), limits are dependent upon individual state laws. To learn more, contact your local insurance agent.

Should you be hit by a negligent motorist, your UM will cover:

• Medical expenses for you and your passengers.
• Vehicle damage (not offered in every state).
• Rental car reimbursement (optional).

Who Needs Uninsured Motorist Coverage

You obviously need UM if you reside in a state that legally requires it. Otherwise, it’s your choice. If you’re unsure of your state’s standing, call you insurance agent or your state’s Department of Insurance.

If UM is an option, you should consider it if your current health insurance policy provides only minimum coverage. Also, take into account state statistics. If you reside in a state with a high percentage of uninsured drivers (some states, according to the Insurance Research Council, average around 25%), you may want to consider the added protection.

UM covers:

• You, the policy holder.
• Any passengers riding with you during the crash.
• Any driver authorized to operate your vehicle.
• If you’re a pedestrian hit by a hit-and-run driver.

Where to Get Uninsured Motorist Coverage

Just about all providers offer UM. Don’t settle, however. Take the time to compare quotes and policies from a variety of insurance companies. You’ll discover rates vary from company to company, allowing you to find a policy that meets your coverage needs and budget.

How Much Uninsured Motorist Coverage Costs

Uninsured coverage is shockingly inexpensive when compared with other insurance costs. On average it comes out to at or around 10% of your entire car insurance premium.

To decide on how much coverage to carry, take a look at your existing health insurance policy. Much of what UM offers may already be covered under your current health plan, thus requiring minimum protection. But if you find that your health policy is lacking in coverage, you should then consider maximizing your UM policy.

The same thinking also applies to uninsured property damage coverage (if offered in your state).

Oregon RV insurance covers more than just motor homes, campers and travel trailers. Choosing the right policy can also cover your passengers, valuables, and assets. Just about every insurance company offers RV insurance, so shop around and compare rates first.

Travel with peace of mind, knowing that when you go on your next camping trip in Oregon that you and your family will be covered in the event of an accident or emergency. Fill out just one application and receive multiple free RV insurance quotes instantly. Get covered and start saving today with Oregon RV Insurance.

Get a free instant quote for Oregon ATV insurance rates Today! Many Oregon ATV owners choose to neglect getting their toys insured. While its not a requirement the cost of getting Oregon ATV insurance is minuscule compared to the cost of just one accident or injury.

You will be shocked when you see these rates and you’ll be wondering why you haven’t done this along time ago. Insure your Motorcycles, scooters, segway, snowmobile, watercraft’s, dirt bikes, and many more ATV’s. Hurry, and get a free Oregon ATV Insurance quote today!

Oregon RVs We Insure

You can insure more than just an RV with an Oregon RV Insurance policy — motor home insurance, travel trailer insurance and camper insurance are available, too. With an Oregon RV Insurance policy, you can protect whatever type of recreation vehicle you have so you can spend your time traveling — and enjoying it.

What’s the Difference Between RVs and Travel Trailers?

Motor Homes
Oregon Motor Home insurance covers recreation vehicles that provide you with temporary living quarters and are permanently attached to a chassis or van. Click on the following links for more detailed descriptions of the motor homes we insure.

• Conventional Motor Home – Class A
• Professional Bus Conversion – Class A
• Non-professional Bus Conversion – Class A
• Camper Vans – Class B
• Mini Motor Home – Class C

Travel Trailers and Campers
Oregon Travel trailer insurance and camper insurance provide coverage for non-motorized, portable units designed to provide you with living quarters for recreational and camping use. Travel trailers and campers do not require special highway permits when towed. Click on a link to get a more detailed description of the travel trailer or camper.

• Fifth Wheel Trailer
• Conventional Trailer
• Pop-Up Tent Trailer
• Trailer with Recreational Cargo Quarters
• Mounted Truck Camper

Portland Oregon Boat Insurance Quotes

Before you hit the water in Oregon, you will need to shop around for Oregon boat insurance. The best way to do this is to shop online. Compare rates from multiple providers to get the best deal and save money, all in one place!

To hit the waters in Oregon you’ll want to adequately protect yourself, your passengers and property. In order to find the best Oregon boat insurance you will want to shop numerous insurance companies. We make this very easy for you, all you need to do is fill out just one application, then receive multiple free Portland Oregon boat insurance quotes.

While reviewing your quotes and different policies, make sure to pic the one that best suites your needs. This may not always be the less expensive one. Also try and first see if adding boat insurance to your current Portland auto insurance policy will save you or cost you more. There is no problem having multiple insurance companies, So choose the best fit for you.

Important Tip!

If you are a first time, or even an experienced rider who has not taken a motorcycle safety course, put it on your “to do” list. Not only will it sharpen your street survival skills, but it will also bring you a discount on your insurance premium.
Things to Keep in Mind When Applying:

Your premium will be based upon several key factors involved with your motorcycling situation. They include, but are not limited to:

The motorcycle engine displacement size in cubic centimeters (cc)

• Type of motorcycle
• Brand of motorcycle
• Your age
• Your driving record
• Your driving experience
• Is the bike garaged?
• Location
• Number of intended miles driven weekly

Remember a majority of the time you’ll receive a higher premium with a larger displacement engine. These bikes are more expensive and provide higher performance, which means more risk!

Hope This Helps!!! Start Your FREE Oregon Motorcycle Insurance Quote Today!

STATE FARM INSURANCE
www.statefarm.com

PROGRESSIVE
www.progressive.com

GEICO
www.geico.com

LIBERTY MUTUAL
www.libertymutual.com

NATION WIDE INSURANCE
www.nationwide.com

FARMER INSURANCE
www.farmers.com

AMERICAN FAMILY INSURANCE
www.amfam.com

SAFECO AUTO INSURANCE
www.safeco.com

METLIFE INSURANCE
www.metlife.com

21ST CENTURY INSURANCE
https://auto.21st.com

TRAVELERS
www.travelers.com

ESURANCE
www.esurance.com

THE GENERAL
www.thegeneral.com

THE HARTFORD
www.thehartford.com

• Built on a van/small truck with original body shell (cab section) visible.
• Usually provides a sleeping bunk atop the cab in addition to a bedroom in the back. When not in use, this overhead compartment can also be used as a storage area.
• Provides the conveniences of a larger motor home in a scaled-down version and at a lower price.
• Ranges from 20 to 28 feet in length.
• Typically sleeps up to six people.
• All other features are installed by the RV manufacturer.

A fifth-wheel trailer has the following characteristics:

• Similar to the conventional model, but has a raised forward section above a fifth wheel coupling device, creating a unique bilevel dimension.
• Ranges from 21 to 38 feet in length.
• Using a truck to tow allows for trailer designs up to 38 feet in length.
• Specially designed devices are generally mounted to pickup beds.
• Built on a welded steel chassis.
• Contains luxuries such as a large living area, all appliances, and bathing, cooking and sleeping facilities.

Actual Cash Value
Current market value of a piece of property; it doesn’t include the cost of repairing property that may have sustained damage.

Adverse Carrier
Another way to refer to the other party’s insurance company that’s involved in a claim.

After-Market Parts
Vehicle parts that were not factory installed.

Aggregate Limit
The maximum amount your insurance company will pay on a claim, no matter how many people or vehicles are involved.

All-Terrain Vehicle (ATV) Insurance
Insurance that helps protect individuals who ride or own all-terrain vehicle from losses or liabilities stemming from accidents, thefts, vandalism, and natural causes. Some insurance companies consider this to be a form of motorcycle insurance. Many states require that ATV riders carry this insurance.

Anti-Theft Equipment
Usually refers to devices that decrease the potential your vehicle will be stolen or vandalized, or that facilitate the vehicle recovery process; examples include motion detectors, car alarms, and starter disablers.

Any Automobile Insurance
A broad form of commercial insurance protection covering automobiles that a company owns, rents, or borrows; it also provides coverage for non-owned vehicles used by the company.

Appraisal
An assessment of the damage done to a piece of property.

At-Fault
Refers to the individual who is found to be liable for the damages incurred in an accident.

Binder
A document issued by your insurance company stating that your coverage is in effect, even though the policy hasn’t officially been issued; it’s a temporary form of insurance until your policy is issued.

Boat Insurance
Insurance that helps protect individuals who drive or own boats from losses or liabilities stemming from accidents, thefts, vandalism, and natural causes; it’s meant for vessels with some sort of mechanical propulsion.

Bodily Injury Liability
Coverage that pays for injuries sustained by others due to your actions; it also pays for defense costs arising from legal action against you. Typically, the coverage is split into two figures. The first represents the maximum amount your provider will pay to one injured individual, while the second refers to the total amount your carrier will pay per accident, no matter how many people are hurt.

Bundling
Having more than one type of insurance policy with a carrier; doing so often allows you to receive a discount on your premiums, along with other benefits.

Carrier
Another way to refer to an insurance company or provider.

Certificate of Insurance
A document given to you by your insurance carrier that details your coverage, including the types and amount of your protection and the policy’s effective date.

Certificate Holder
The individual to whom the policy was issued.

Claimant
The person or company who files a claim.

Claim
A request made to your insurance company to pay for a loss following an accident, theft, or some other type of loss. Once you file a claim, your carrier will investigate to see if your claim is valid and determine if your policy covers the loss.

Claims Adjuster
Individual who assesses the validity of a claim, and is often involved with settling the claim.

Collision Coverage
Coverage that pays for damage to your vehicle, even if you’re responsible for causing it. Your provider will pay the repair costs up to the actual book or cash value of the vehicle before the accident.

Commercial Drivers
Usually refers to professional drivers who are required to obtain a commercial driver’s license (CDL) due to the type of vehicle they drive for work purposes.

Commercial Insurance Filing
A document indicating that your commercial insurance coverage meets government requirements. While the document is usually sent to your state’s motor vehicle department, it can sometimes be submitted to federal agencies. General vehicle liability insurance and cargo insurance are two common types of commercial insurance filings.

Commercial Vehicle Insurance
Insurance designed to cover the risks associated with commercial driving; commercial drivers may seek this insurance on their own or through their employer. While commercial insurance is meant for those who need a CDL, it’s also for drivers who don’t need a CDL but use their own or their company’s vehicle for business purposes, such as for making deliveries or transporting passengers.

Comparative Negligence
A type of law enacted in some states that allows you to receive a portion of an insurance settlement even if you were found partially liable for the loss.

Competitive Replacement Parts
Parts made by a company other than the vehicle’s manufacturer. These parts meet or exceed the quality of the original parts, but are less expensive.

Comprehensive Coverage
Coverage that pays for vehicle damage or another sort of financial loss stemming from reasons other than striking another vehicle, such as vandalism, hail, high winds, fire, water, or theft.

Compulsory Auto Insurance
Refers to the mandatory auto liability insurance required by a state; the minimum coverage standards vary by state.

Contributory Negligence
A type of law enacted in some states that doesn’t allow you to receive any portion of an insurance settlement if you were found to be even partly responsible for causing the loss.

Covered Person(s)
Another name for those individuals listed on an insurance policy.

Credit Score
A numerical ranking of your credit history that is based on a variety of factors. Insurance carriers sometimes check credit scores during the underwriting process. This is especially true with commercial policies; companies with credit problems may be tempted to save costs by cutting back on safety measures, which can lead to increased claims and more risk for the insurance company.

Deductible
The amount of money you’re responsible for paying after your carrier accepts your claim. Usually, the higher your deductible, the lower your premium will be, as you’re assuming more of the financial risk for your insurance company.

Defensive Driving
An approach to driving that emphasizes anticipating what may happen next, and being prepared to take the appropriate action to avoid danger. It involves vigilant monitoring of traffic and roadway conditions, and planning ahead.

Depreciation
The decline in a property’s value as time goes by from customary wear and tear.

Discount
Typically refers to a cost reduction in your premium that’s available if you follow certain safety guidelines set by your insurance company; the goal is to promote safety and reduce the likelihood your provider will have to pay for a loss. Discounts are commonly available if your vehicle has air bags, anti-lock brakes, or a safety alarm, or if you’ve recently completed a driver safety class.

Direct Loss
The initial, immediate amount of loss incurred by a piece of property due to damages that were incurred.

Earned Premium
The measure of insurance protection already provided by your insurance carrier. If you paid for a full year of coverage, after half a year your carrier will have six months of earned premiums, and have six months of unearned premiums left to provide to you in order to fulfill its obligation.

Endorsement
Sometimes referred to as a “rider,” this written attachment to a policy can limit or expand the terms of the policy. Both the insured and the insurance company must agree to the terms.

Financial Responsibility Laws
Laws that require drivers or owners of vehicles to meet their state’s minimum financial requirements for losses incurred by negligent actions that occur while driving or using their vehicle. Each state sets its own minimum standards; auto liability insurance is normally used to meet these requirements.

Fuel-Spill Liability Insurance
Form of boat insurance protection that helps pay for the costs associated with an accidental oil or fuel spill that causes bodily injury or property damage.

Full Glass Coverage
Coverage that waives your deductible in the event your vehicle needs to have any sort of glass repair.

Full-Timer Insurance
Similar to a homeowner’s policy, this form of recreational vehicle (RV) insurance helps cover expenses associated with injuries, property damage, and related matters for individuals who use their RV as their primary residence.

Gap Insurance
Coverage that pays for the difference between the amount remaining on your auto loan and the actual value of your vehicle.

Garagekeepers Legal Liability
Commercial coverage that helps financially protect parking lot or storage garage owners for losses that occur to vehicles left in their possession.

Grace Period
The timeframe after your premium is due that you may pay your premium without any lapse in coverage, or other sort of penalty. Most grace periods last for 31 days; incidents that occur during this time will be covered as long as you pay the premium due before the end of period.

Hazard
A situation or occurrence that increases the risk of an accident happening, such as icy road conditions, poor visibility, or an obstacle on the road.

Hazardous Materials Insurance
A specialized type of insurance for carriers that haul cargo containing properties deemed to be detrimental to humans or the environment.

Hired Auto Insurance
Commercial insurance coverage that pertains only to vehicles that are borrowed, leased, rented, or hired under the company’s name.

Insurance Institute for Highway Safety (IIHS)
A national, non-profit research group funded by auto insurance companies whose goal is to reduce the amount and severity of automobile accidents.

Insurance Score
Ratings used by insurance companies in some states to determine if an applicant is a worthwhile risk. These confidential scores focus on your financial management history, and look at matters such as your payment record, number of credit cards available, and if you’ve ever filed for bankruptcy.

Interstate Operating Authority
Refers to federal permission to carry regulated freight across state lines; for-hire vehicles that carry regulated freight interstate must have this authority, regardless of their weight.

Lapse of Coverage
The end of your insurance coverage due to failure to pay your premium by the end of the grace period. You can sometimes reinstate a lapsed policy by paying all the back premiums due; however, incidents that occur during the lapsed period won’t be covered by your policy.

Liability
Your legal responsibility to pay for a loss or damages caused by your actions.

Liability Insurance
Coverage that helps pays for injuries or property damage you cause to another party.

Medical Payments
Protection that pays for medical expenses caused by an accident, even if you’re at fault for the accident. It covers the cost of losses for both you and your passengers, up to your policy limit.

Motorcycle Insurance
Insurance that helps protect individuals who ride or own motorcycles for losses or liabilities stemming from accidents, thefts, vandalism, and natural causes.

Motor Truck Cargo Insurance
Financial protection that helps trucking companies pay for costs associated with damaged or loss freight; rates for this coverage vary by cargo type.

Motor Vehicle Report
A document that contains all your moving violations (such as speeding or failing to stop infractions), and other serious traffic violations.

National Insurance Crime Bureau (NICB)
A not-for-profit agency that works with insurance companies and law enforcement departments throughout the country to help locate and prosecute individuals involved with insurance crimes.

National Highway Traffic Safety Administration (NHTSA)
A federal agency dedicated to overseeing and promoting driving safety throughout the country.

National Association of Insurance Commissioners (NAIC)
An organization representing all the state insurance commissioners; its mission is to assist regulators in serving the insurance needs of the public, and to apply insurance principles in a responsive and effective manner.

No-Fault Insurance
A general term that can refer to the practice of an insurance company paying for the costs incurred in an incident no matter what party was legally responsible for the loss. But, it also can refer to state laws that allow motorists to sue a third-party only if the losses or damages meet a certain criteria or threshold. No-fault insurance is only practiced in some states.

Non-Owned Automobiles Insurance
Coverage that helps provide financial protection for losses that occur to vehicles that you or your business doesn’t own or lease; for example, vehicles owned by your employees that are used for official business purposes.

Non-Owner’s Insurance
Also referred to as non-driver’s insurance, this insurance provides liability, medical payments, and uninsured motorist coverage to those who don’t own a vehicle.

Non-Trucking Liability Insurance
An extended form of liability protection for companies that lease trucks; it pays for losses that occur during non-business use of trucks and that are beyond the limits of an ordinary liability policy.

Occupational Accident (Occ/Acc) Coverage
An alternative to workers’ compensation coverage for truckers; most motor carriers insist that their truckers either carry Occ/Acc or workers’ compensation coverage.

On-Water Towing and Labor
A form of boat insurance protection that covers towing and labor costs that occur while the vehicle is in the water.

Owned Automobiles Insurance
A broad form of liability coverage that provides financial protection for all automobiles you or your business own.

Pay-Per-Mile Coverage
A new type of auto coverage in which your premiums are based on the amount of miles you drive; the less you drive, the cheaper your premium. This coverage is currently available only in a few states.

Peril
A risk covered by your insurance policy that can cause damage, such as a fire, theft, hail storm, or an accident.

Per Occurrence Limit
The maximum amount your insurance company will pay for damages resulting from a single incident.

Per Person Limit
The maximum amount your insurance company will pay for injuries occurring to one individual stemming from a single accident.

Personal Injury Protection (PIP)
Coverage that goes beyond medical payment coverage and takes care of costs associated with rehabilitation, work loss, and funerals; the exact coverage varies depending on your insurance company. PIP provides financial protection for both you and your passengers.

Personal Transportation Vehicle
A motorized vehicle used to transport one individual; examples include a motorized scooter or a Segway.

Personal Watercraft Coverage (PWC)
Another name for watercraft insurance; PWC covers items such as water skis and other individual water transportation devices.

Physical Damage Insurance
A form of coverage that provides financial protection for vehicles; it typically pays for damages that are caused by fire, wind, hail, water, vandalism, theft, and collisions.

Points
A measure or number associated with a traffic infraction, as set by your state. If you accumulate enough points on your driving record, you may face a license suspension or revocation, have to take a remedial driving course, or pay a higher premium.

Policy
The written contract given to you by your insurance company which details your coverage.

Premium
The amount you must pay to obtain insurance coverage. Premiums may be paid monthly, quarterly, bi-annually, or annually, depending on the carrier.

Primary Liability Insurance
Usually refers to a required form of commercial insurance coverage for trucking companies; it helps covers expenses for accidents caused by their trucks that occur to other vehicles.

Principal Driver
The individual named on the insurance policy that will be driving the vehicle the most often.

Property Damage Liability
Coverage that pays for the cost of third-party property damage you caused to things such as fences, mail boxes, utility poles, and other vehicles.

Proof of Insurance
Usually refers to a small identification card issued by your insurance company that identifies you as a policy holder, along with your policy expiration date. You may be required to show the card when stopped for a traffic violation, renewing your driver’s license, or other reasons related to driving.

Quote
A fixed estimate given by an insurance company concerning the cost of providing coverage.

Recreational Vehicle (RV) Insurance
Insurance that helps protect individuals who drive or own recreational vehicles for losses or liabilities stemming from accidents, thefts, vandalism, and natural causes.

Rental Car Insurance
Coverage offered by a rental car agency; the protection varies, but can include loss damage waivers (LDW) and collision damage waivers (CDW) protection (which basically is the same as collision and comprehensive coverage), and liability insurance. This insurance may be unnecessary if your insurance provider or credit card company includes rental car coverage for you.

Rental Insurance
Also known as rental reimbursement coverage, this protection pays you for the cost of a rental vehicle while you car is being repaired due to damages caused in an accident covered by your policy; the amount and length of this coverage varies by the insurer.

Rental Reimbursement
Coverage that helps pay for rental car costs during the time your vehicle is being repaired or is unusable due to an accident; the exact coverage available varies by policy.

Required Coverage
The minimum amount of auto insurance or other financial coverage required to legally drive within your state.

Rider
Another name for an endorsement.

Safety Apparel Insurance
Protection usually associated with motorcycle, snowmobile, or ATV insurance that helps recover expenses connected with damaged helmets, gloves, jackets, boots, goggles, and related safety items.

Safety Equipment
Usually refers to newer, advanced types of equipment that promote driver and passenger safety, such as air bags and anti-lock brakes.

Salvage
Typically refers to damaged property that an insurance company takes ownership of after paying a claim. Often the insurer will try to recover some of its losses by reconditioning the property and selling it as salvaged property.

Seasonal Business Insurance
A type of commercial vehicle insurance that’s for companies that only operate during part of the year; examples include businesses involved with snow removal or landscaping.

Self-Insurance
Refers to an individual or a company taking on all or part of a financial risk instead of transferring it to an insurance company. Assuming the risk reduces the potential expenses for the carrier, which leads to lower premiums.

Segway™ Insurance
Insurance that helps protect individuals who ride or own Segways for losses or liabilities stemming from accidents, thefts, vandalism, and natural causes; these vehicles are defined as self-balancing, electric vehicles with two wheels that are used for personal transportation.

Specified Cause of Loss
A limited type of comprehensive coverage, as it only covers risks specifically mentioned in the policy. It usually covers losses stemming from natural causes, such as wind, hail, flood, earthquake, and fire, as well as those associated with theft or vandalism.

Snowmobile Insurance
Insurance that helps protect individuals who ride or own snowmobiles for losses or liabilities stemming from accidents, thefts, vandalism, and natural causes.

Stacking
Coverage that permits under-insured or uninsured motorists coverage to be increased by the number of vehicles on your policy in order to pay a claim.

Subrogation
Assigning your rights as the insured party to your insurance company so that your provider may collect from the negligent party’s insurance company. Under subrogation, your insurance company will pay the expenses due to you upfront in exchange for you granting legal permission to your insurer to attempt to recover the money owed by the other insurer. Subrogation can allow you to receive your money more quickly than waiting for the third-party insurance company to pay.

Surcharge
An additional fee imposed by your insurance carrier on top of your normal premium. Surcharges are sometimes added following an accident that you caused, or after you receive a moving violation.

Tow Truck Insurance
A type of commercial vehicle insurance for companies that generate income from the use of towing equipment; examples include roadside assistance, repossession, or auto repair businesses.

Traffic School
Typically refers to a classroom or online setting where drivers learn about safe driving practices. You may be forced to attend traffic school as a result of accumulating too many points on your license, or for other reasons. By attending traffic school, you may be able to have a ticket waived, have points removed from your license, or even receive a reduction of your insurance premium.

Trailer Interchange Insurance
A form of liability protection for truckers; it covers losses to non-owned trailers and related types of equipment that are in their possession.

Towing and Labor
Coverage that helps pay for towing and related costs when your vehicle is disabled due to an accident or a mechanical breakdown; coverage varies by policy in terms of what expenses will be absorbed.

Umbrella Policy
A policy that gives you extra liability protection extending beyond the limits of your auto insurance policy.

Under-Insured Motorist Coverage
Protection that pays for the difference between a negligent party’s insurance coverage and the cost of injuries sustained by you, up to your policy limit. This coverage also protects you for damages caused by hit-and-run drivers. Under-insured motorist property coverage takes care of the excess costs incurred by your vehicle or other type of property, again, up to your policy limit.

Underwriting
Refers to the process of determining whether an insurance applicant is an acceptable risk to an insurance provider.

Uninsured Motorist Coverage
Protection that covers you and your passengers for injuries sustained due to the actions of a negligent uninsured driver, or a hit-and-run driver, up to your policy limit. Uninsured motorist property coverage takes care of the excess costs incurred by your vehicles or other property, up to your policy limit.

United States Department of Transportation (USDOT)
A federal agency dedicated to ensuring safe, efficient, accessible, and convenient transportation throughout the country.

Vacation Liability Insurance
A type of RV insurance that helps pay for the costs associated with bodily injuries or property damage that occur while your RV is being used as a temporary vacation home.

Vehicle Identification Number (VIN)
The unique serial number given to your vehicle by its manufacturer; the VIN is normally located on the driver’s side dashboard or door frame.

Voided Contract
A policy that is no longer valid due to a violation of the terms of the policy; it often happens as a result of an insurance company finding out that the insured misrepresented the truth on the insurance application.

Watercraft Insurance
Insurance that helps protect individuals who ride or own watercraft for losses or liabilities stemming from accidents, thefts, vandalism, and natural causes. Although states define “watercraft” differently, it generally refers to kayaks, canoes, paddleboats, and other means of water transportation that aren’t mechanically propelled.

Wreckage Removal Coverage
Protection commonly associated with boat or watercraft insurance; it helps pay for expenses related to removing a boat or watercraft from the water after it’s been damaged or destroyed.

Bodily injury liability coverage can shelter you from financial responsibility when you are at fault in an accident that results in physical injury to your passengers or any other person. Whether it’s minor bumps and bruises or injury-related death, you (the at-fault driver) will carry the burden of paying for medical care and much more.

When you shop for an insurance policy, bodily injury liability coverage typically falls under the general umbrella of liability coverage. “Liability” means “responsibility,” and it refers to two different types of financial responsibility in an accident: damage done to people (bodily injury) and damage done to the vehicles or other property (property damage).

What Bodily Injury Coverage Covers

If you get into a wreck and are at fault, your bodily injury liability coverage will then kick into action.

Note: Fault is a very critical factor in car accidents, because it determines who must pay for all the damage. If the accident results in physical injuries to you, your passengers, or anyone else involved, be sure to contact law enforcement (if they are not already present). The law enforcement officer will typically declare someone at fault after learning the details of the collision.

Bodily injury liability coverage does not cover your own injuries or the injuries of anyone else named on your insurance policy. Those injuries are usually covered by personal injury protection coverage. Bodily injury liability coverage does, however, cover any other person involved in the accident. It is often used to pay for one or more of the following:

• Medical bills
• Time lost from work
• Legal representation for injured parties
• Funeral expenses
• Long-term rehabilitation or nursing care
• “Pain and suffering,” which is an amount determined by a court to address the emotional or physical stress the accident or injuries caused

There are exceptions to every rule, and this goes for your liability coverage. Be sure to check your policy carefully to know these exceptions. Here’s one that’s probably common to all policies, and probably also a no-brainer: Your policy won’t cover injuries in an accident that you intentionally caused.

Who Needs Bodily Injury Coverage

Simply put, every driver. You never know when you might cause an accident, and you can easily protect yourself from the staggering debt caused by legal suits or extensive medical costs.

At this time, however, not all states require this coverage. But you should know that the states that don’t require it also don’t offer any extra protection against financial responsibility in an accident?meaning that no matter where you live, if you cause an accident with bodily injury to a person, you will be liable for all costs.

Some states that require the coverage will waive that requirement as long as you can show proof of financial responsibility in another way. Usually that means a bond in a specific amount (varying by state) issued by an authorized company, or a certificate of self-insurance (this mostly applies to dealers or companies with more than 25 insured vehicles).

Where to Get Bodily Injury Coverage

All major insurance carriers offer bodily injury liability coverage, even in states where it is not required. Shop around to find the coverage that best suits your needs.

How MuchYour cost for the coverage is based on how much coverage you want. The higher the amounts, the higher your cost will be.

If bodily injury liability coverage is required in your state, chances are that the minimum requirement is listed in a “split” amount, such as 15/30 or 50/100. Bodily injury coverage policies always have two amounts, representing:

• The maximum payout per person
• The maximum payout in total

If your policy has bodily injury coverage of 50/100, that means it will pay up to $50,000 per person injured in an accident, but only to a maximum of $100,000.

A good rule of thumb for many buyers is to purchase the highest bodily injury liability coverage limit they can afford. If your coverage isn’t sufficient to pay for all injury-related costs in an accident you caused, the injured person’s lawyer can then come after you for the remainder of the money.

However, if you’re bringing in barely $30,000 a year and don’t own a home or any other valuable assets?meaning the lawyers wouldn’t get much even if they did sue you?it might make more sense to purchase a lower level of coverage for the time being. Just remember to increase your coverage as your needs change and your assets increase.

• Built by the factory for camping purposes with sleeping, kitchen, toilet facilities, 110 volt hookup, fresh water storage and an extension roof.
• Most economical, versatile and maneuverable type of motor home.
• Narrower than other motor homes because it utilizes space within the existing van body.
• Ranges from 16 to 21 feet in length.
• Typically sleeps up to 4 people.
• All features are installed by the RV manufacturer.
• Does not include conversion vans.

These two kinds of coverage are similar in that they both deal with damage and loss related to your vehicle; however, where comprehensive coverage takes care of damage your vehicle suffers for reasons unrelated to actual collisions (think theft, vandalism, fire, and earthquakes), collision coverage handles damage from collisions with other vehicles, stationary objects, and in some cases flipping over and encounters with potholes.

What Collision Coverage Covers

Sometimes the line between collision and comprehensive coverage can seem blurry, so when you purchase collision coverage be sure to have your insurance agent thoroughly explain the kinds of collisions the coverage includes.

Your agent should also explain the exact expenses your collision coverage handles. Typically, collision insurance includes:

• The cost to make repairs to your vehicle.
• The cost to replace your vehicle in the event a collision “totals” it.

Keep in mind collision coverage normally only handles repair and replacement costs up to your vehicle’s actual cash value. Your vehicle’s actual cash value is not how much you paid for it, but how much it’s currently worth considering factors like its age and condition.

The actual cash value also plays a role in helping you determine whether you need collision coverage. Read on.

Who Needs Collision Coverage

Whether you need collision coverage depends on the kind of vehicle you own?and whether you actually own it.

If you plan to lease a vehicle or solicit the help of a financial institution to pay for a vehicle, you should also plan to purchase a car insurance policy that includes collision coverage. Because leasing companies and lien-holders also have stakes in these vehicles, they generally require collision coverage to help ensure they’re covered, too.

On the flip-side, if you buy your vehicle outright or have made your final car payment, protecting it with collision coverage is usually your own choice. As you’re deciding, keep in mind collision coverage is generally limited to the vehicle’s actual cash value, so:

• If your vehicle is fairly new or in great condition, both its value and the cost to repair it might be high. Having collision coverage would certainly pay in the event your vehicle becomes damaged.
• If your vehicle is older or in not-so-great shape, both its value and the cost to repair it might be low. Having collision coverage might mean you’d pay more in extra insurance costs than it would take to repair the vehicle or than the vehicle is actually worth.

If you need help determining your vehicle’s value, Kelley Blue Book and NADA Guides are excellent resources.

Where to Get Collision Coverage

Shopping for collision coverage is as easy as shopping for any other kind of auto insurance. You can talk with your current insurance provider about adding collision coverage to the plan you already have or, if you don’t currently have auto insurance, you can purchase collision coverage from whichever carrier you choose after you shop around.

How Much Collision Coverage Costs

Like other kinds of car insurance coverage, collision coverage costs commonly break down into two different kinds of payments:

• The premium, which you’ll usually pay every month, every six months, or once a year. Simply put, the premium is your insurance payment.
• The deductible, which you’ll only pay in the event your vehicle becomes damaged. Deductibles are out-of-pocket expenses and usually range from $250 to $1,000.

The goal is to figure out whether what you’re paying (or may end up paying) in collision coverage costs is worth it in the end. To do this, you must consider how the premium and deductible fit into your budget.

Comparing Premiums

In addition to shopping around for the premium that suits both your needs and your budget, the amount of your deductible will also help determine how high or low a premium you’ll pay.

For example, if you opt for a high deductible, you’ll generally pay a lower premium. If you choose a low deductible, you’ll probably have a higher premium.

Choosing Your Deductible

A mistake many people make when choosing their deductibles is to assume “it” won’t happen to them (“it” being any kind of collision covered under collision insurance). So, they choose high deductibles in order to get low premiums. Then, when “it” does happen to them, their deductibles might not fit their budgets.

When choosing your deductible, think about the out-of-pocket expenses you’re able to absorb right now. If your budget allows you to easily pay a high out-of-pocket expense, choosing a high deductible might be worth it to keep your premium low. However, if you can’t afford a high deductible it might be in your best interest to pay a higher premium.

In the end, getting the best premium and the deductible that fits your budget is a balancing act and an experienced car insurance agent will be able to help you determine if what you’re willing or able to pay will line up with the coverage you need.