Auto Insurance Quotes: What is Basic and Standard Coverage?

All of the options available for auto insurance quotes may see overwhelming if you don't know what you're dealing with. However, most coverage can fall under either basic or standard coverage. Basic coverage typically includes what is minimally required by law in the state you live in, and standard coverage would be anything in addition to that. Not only does each type of coverage vary in what it handles, but there will also be a price difference between the two. What you choose to have covered will vary depending on your driving habits, life situation, and personal preference.

Types of Policies

If you are interested in purchasing only basic coverage, only vehicle damage and personal injuries of the other party involved in an accident in which you are found at fault will be covered. You will be responsible for covering the damage to your property, medical expenses, and sometimes the medical bills of passengers in your car. When choosing this option, you will have a choice of coverage amounts to choose from.

If you choose to go with standard coverage, damages to your property and your personal medical bills are typically covered, even if you are at fault for the accident. Other types of coverages are available, but the types will vary depending on the insurance company and the state you live in.

Your Vehicle

Your vehicle might have an impact on the type of insurance you are required to have. If your vehicle is currently being financed, your lender might have specific requirements that may differ from the requirements mandated by your state. Lenders will typically want you to have standard coverage, and some may want you to purchase additional coverage called GAP coverage. Even used cars that are financed will follow these requirements.

Your Lifestyle

Finally, your lifestyle will dictate what type of coverage is best for you. Obviously, you can only purchase what you can afford. If you are currently struggling financially, you may want to purchase basic coverage and upgrade to standard at a later time. If you have other debts that may be more important, you might want to have a lower premium as well. Some customers do not agree with the insurance law, and pay only for basic out of principle. Remember, if you do not have sufficient coverage in the event of an accident, you will be responsible for the bills. Choosing the best coverage you can reasonably afford is typically the best way to go.