Compare Car Insurance Comparison Shopping – A Step-by-Step Answer Key

Getting car insurance can be confusing with so many options to evaluate. Comparing plans and coverages is critical to finding the right policy at the best price. This comprehensive guide provides a sample car insurance comparison shopping exercise with explanations for selecting each type of coverage.

Use this as an answer key to complete your own auto insurance comparison shopping assignment successfully!

Overview of Factors in the Exercise

Let’s look at the parameters provided for the insurance comparison shopping exercise:

  • 20 year old driver
  • Owns a used 2016 Honda Civic
  • Commutes 20 miles each way, 5 days a week
  • Drives approximately 12,000 miles annually
  • Resides in Georgia

With these factors in mind, we can compare sample policy options using pricing and coverage details typical for this driver profile.

Minimum Liability Requirements in Georgia

The first step is checking your state’s minimum liability requirements. In Georgia, the minimum coverage amounts are:

  • $25,000 bodily injury per person
  • $50,000 bodily injury per accident
  • $25,000 property damage

So at minimum, these liability limits must be purchased. Many experts recommend higher 100/300/50 limits or more.

Bodily Injury Liability Explained

Bodily injury liability coverage pays for injuries to others you cause in an at-fault accident. Here are key points on selecting bodily injury limits:

  • Higher limits recommended to protect assets
  • Enhanced 100/300 limits provide 5 times more coverage than basic
  • Premium difference is small compared to more protection

Recommended Selection: Enhanced Bodily Injury

Property Damage Liability Explained

Property damage liability pays for damage to another vehicle or property when you’re at fault. Here are considerations for picking limits:

  • Higher limits again recommended
  • Enhanced $50,000 option provides over 3X more coverage than basic
  • Only $60 more annually over basic option

Recommended Selection: Enhanced Property Damage

Collision Coverage Considerations

Collision coverage pays to repair damage to your vehicle from an accident. Here’s how to pick the deductible and limits:

  • Lower deductible means lower out-of-pocket costs
  • Premiums increase substantially for lower deductibles
  • Stick with standard $500 or $1,000 deductible to balance premium costs

Recommended Selection: Moderate Collision Coverage

Comprehensive Coverage Breakdown

Comprehensive insurance covers non-collision damage from theft, vandalism, weather, etc. Here are tips for choosing comprehensive deductibles and limits:

  • Again, lower deductible means lower out-of-pocket costs
  • Premium costs jump significantly with lower deductibles
  • Standard $500 deductible provides affordability and protection

Recommended Selection: Moderate Comprehensive Coverage

Medical Payments Coverage Considerations

Medical payments coverage pays for injuries to you and passengers in your vehicle. Here’s guidance on selecting limits:

  • Not required but provides extra protection
  • $5,000 limit covers ambulance ride and ER visit
  • $10,000 allows for short hospital stay, rehab
  • Higher limits available but premiums increase

Recommended Selection: $5,000 Medical Payments

Uninsured Motorist Coverage Explained

Uninsured motorist coverage protects you if hit by a driver with no insurance. Key factors in picking limits:

  • Matches your bodily injury liability limits
  • Protects from uninsured drivers causing injuries
  • Low cost to increase protection

Recommended Selection: $100,000 per person / $300,000 per accident

Final Takeaways

Comparing plans using sample pricing sheets helps you evaluate costs vs. benefits for each type of auto insurance coverage. Considering the facts of your situation and minimum requirements guides the decision making.

The goal is to purchase adequate protection at the most affordable cost. Our recommended selections optimize coverage for the driver profile while balancing premium outlays.

Use this auto insurance comparison shopping answer key as a model when doing your own policy selection homework!

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Why should you comparison shop for auto insurance?

When shopping for car insurance, don’t rely on only one quote from an insurance provider. Compare at least four prices to give you a better understanding of pricing. It’s also recommended that you shop around and compare car insurance quotes annually. That way you can make sure you’re getting the best prices available.

What is the most important car insurance you should buy?

Now, there are a bunch of different types of car insurance. The most important ones are liability, comprehensive and collision coverage. We call them the big three of basic car insurance—coverage you can’t afford to go without.

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