Reader’s Question:

I am a beginner driver and am quite unfamiliar with auto insurance. What should I look for when I compare auto insurance policies of different companies?

Grant

Grand Rapids, MI

When you compare auto insurance policies, the first thing that should be considered are the rates. As there are about 700 major insurance carriers in the whole country, finding those competitive rates should not be difficult. Secondly, when you are comparing the rates of auto insurance companies, make sure that they are for the same amount of coverage that you wish to obtain. The best company should offer the most auto insurance coverage for the most reasonable rates.

And this is why it is very vital to know first your state’s minimum auto insurance requirements, so that you know which insurance to obtain quotes for. Michigan’s observance of the no-fault law has made Personal Injury Protection (PIP) a requirement to all of its motorists. This means that motorists involved in traffic accidents will be covered by their respective insurers regardless of who was responsible for the mishap. Those who have an extensive health plan opt to obtain only the minimum levels of PIP which is at $10,000. Liability Insurance also has to be obtained. Bodily Injury Liability (BIL) for one person is set at $20,000, $40,000 for two or more victims you hurt in an accident. Property Damage Liability (PDL) of $10,000 has to be obtained, as well, and should be able to pay for destroyed public or private properties up to $10,000.