Sunday, December 9, 2007

Affordable High Risk Auto Insurance Online

If you're in the market for affordable high risk auto insurance online then you are in luck because such insurance is rather easy to find.

When you are looking for auto insurance there are a lot choices you can make, but basically they all boil down to two basic types of insurance. Either you are going to buy some form of full coverage insurance, or you want an affordable high risk auto insurance policy, also known as a basic liability policy.

A basic liability policy only covers the other person (or persons) involved in an accident with your vehicle. A limited liability policy does not pay for any damage to your vehicle nor does it pay for medical payments for you or for anyone riding in your vehicle.

Each state sets its own limits for liability insurance, so the following example may not be the amount of liability insurance that you will be required to buy in order to drive in your particular state, but this is how liability insurance works:

Your policy will be quoted as 3 numbers, such as 10/20/10. The first "10" tells you that the insurance will pay a maximum of $10,000 to any one individual involved in an accident with your vehicle. The "20" tells you that your insurance will pay a maximum of $20,000 to pay the medical bills of everyone in the other vehicle(s) that are involved in an accident with your vehicle, regardless of how many people are hurt or the extent of their injuries.

The final "10" in our example refers to the maximum amount the insurance will pay for property damage caused by your vehicle. Property damage generally means repairing or replacing the other person's vehicle but may include other property as well.

As mentioned, basic limited liability insurance won't pay a penny toward repairing your vehicle and it won't pay for your medical bills or for the medical expenses of anyone in your vehicle.

What really makes basic liability insurance high risk is the fact that the maximum payments it makes are rather low and it is very easy for medical expenses and property damage to be greater than what a basic liability policy will pay for. If that happens you could be personally held responsible for paying the difference out of your own pocket.

This could result in you losing your life savings or even losing your home.

If you are interested in buying affordable high risk insurance the best place to find it is online. Just make sure that you check the prices on more than one website that lets you compare auto insurance prices.

You'll need to compare the prices on a minimum of 3 different sites if you really want to insure that you are seeing the lowest possible price, but once you've done that your job is done. Just pick the lowest price you find and you're done!

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