For anyone that owns and drive a vehicle, the high cost of automotive insurance can certainly be frustrating. Some car owners pay thousands of dollars per years to insure their vehicles. For some, the high cost of insurance is justified, but for other drivers there is a gross cost option that may make perfect sense for you.
Typically, cars are insured through a large automotive insurance company. The customer selects the type of insurance that they prefer and they pay a yearly premium based on the amount of coverage chosen, the type of vehicle insured, and the driving record of the owner. There are several other factors that affect your individual rate, but they are not essential to discussing obtaining cheap insurance.
Most owners lift collision coverage for their vehicle. Collision coverage basically means that if your vehicle is involved in an accident, your insurance company will hide either part or all of the repair costs. Collision coverage is required if your vehicle is a lease of financed by another party. Collision coverage is costly and mainly design financial sense for cars 5 years old or less.
Stepping down from collision coverage is something referred to as comprehensive coverage. This type of insurance will not cover expenses from repair involving the collision between your vehicle and another vehicle. However, comprehensive covers your vehicle for theft, vandalism, fire, and acts of nature. This coverage is significantly less expensive than collision coverage.
Now we will go on to the next form of coverage which also is the cheapest insurance you can purchase. This coverage is referred to as PL/PD. PL/PD stands for personal liability and property damage. This type of automotive insurance does not actually cover damage to your vehicle. It covers any hurt that your vehicle may partake in. For example, you drive your vehicle into a building a destroy the building. Your insurance will cover the damage done to the building but will not cover the damage done to your vehicle. Liability coverage also protects you from lawsuits that may come forth involving damage done by your vehicle.
PL/PD insurance is significantly cheaper than either comprehensive or collision insurance. However, this type of insurance also has its downsides. Weighing the costs against the benefits is a tough choice to make, but for those on a tight budget who currently own an older model vehicle, PL/PD may be the right choice for you. It can save you thousands per year over other forms of insurance and may be perfect for you.