Insurance policy holders with full tort simply have the advantage of having the full rights to sue a negligent party that caused the policy holder pain and suffering. Those who opt for limited tort on the other hand are still entitled to compensation for medical expenses but do not have the right to sue a negligent party who caused the policy the accident for any non-monetary damages including the pain and suffering it caused. In essence taking an insurance policy with limited tort means you are still covered for any injuries and damages to your property but you give up your right to file for compensation for other non-monetary damages. The only exception wherein policy holders with limited tort can sue for non-monetary damages is when the case is serious with serious categorized as resulting to death, serious impairment of bodily function, or permanent serious disfigurement. Other than that there is no way for a limited policy tort holder to claim for further compensation after all the medical bills and car repair bills have been paid.

Some insurance companies encourage people take the limited tort option to be able to save money. Though it is true that on the average one can save around $100 when you choose a limited tort over a full tort policy, it is actually much wiser to go for the full tort policy. If you look at your savings on a daily basis when you choose limited tort it amounts to less than a little over a quarter each day. Now if you get in an accident and need to go on leave to recuperate for some time and go over your leave credits compute just how much you would lose per hour you are away from work. With the limited tort option you cannot sue for such damages since the damage is incidental. You can be sure that within a week or two the non-monetary damages that you’d be suffering from as an after effect of the accident will amount to much more than a years worth or even several years worth of money saved from choosing a limited tort over a full tort policy.

What is FPB-Medical? As the term implies, it covers medical expenses for the policyholder in case of an accident. It also includes coverage for other drivers listed in the policy as well as relatives who are living with the main policyholder. The nice thing about First Party Benefits (whether medical or not) is that you and the other people listed on the policy will receive the benefits regardless of whose fault the accident was.

FPB-Medical is similar to medical payments coverage and Personal Injury Protection, or PIP. Depending on the state where you reside, the benefits and coverage may vary. However, the basic services include the following:

Medical and surgical treatment arising from an accident
Rehabilitation services which are deemed essential. This includes physical therapy, speech therapy, and the like.
Other treatments such as dental, psychiatric, psychological, and optometric, which are also deemed necessary
Emergency services such as ambulance service as well as nursing care
Medicine, medical supplies, and prosthetic devices which are deemed essential

In Pennsylvania, where FPB is required, the lowest limit you can take out is $5,000. This amount includes the total amount that will be paid by the insurance company for all expenses per person. You can consider increasing the total limit depending on what other medical insurance you may have. In addition to this, the state of Pennsylvania requires that you have the same limits on all cars (or vehicles) if you are insuring several vehicles under one policy.

Aside from First Party Benefits-Medical, you can opt to take out other areas to be covered for FPB. You can opt to purchase wage loss coverage, accidental death benefits, funeral benefits, and extraordinary medical benefits. The last would cover other medical conditions which are not included in the basic FPB-Medical coverage. Limits also apply to the other areas covered by FPB. For funeral benefits, for example, Pennsylvania places a $2,500 cap. Similarly, there is a $25,000 limit for accidental death benefits. With combination benefits, you can allot the amount to different areas if you wish to do so.

Aside from the convenience of being covered for any road emergencies another advantage of buying emergency road services as part of your car insurance is that you end up paying less than if you purchase a separate emergency road policy. Emergency road services policies are offered by a lot of automobile clubs and car insurance companies as well. Purchasing a policy just for one extended trip is more expensive if you compute the cost per day. So if you do travel a lot and purchase a policy each time you take a trip you might be surprised to find out that you actually end up paying more than if you just opted to include it as an additional feature of your car insurance policy. Even one year subscriptions for emergency road services are usually more expensive than having it as an additional feature of your car insurance.

Emergency Road Services offer coverage for problems usually not covered in typical car insurances. Some of the usual problems covered by emergency road services include towing, battery/jump start service, vehicle fluid delivery, on site mechanical adjustments, lock-out services, flat tire assistance, winching, and even travel assistance. Depending on your insurance provider the road problems covered can be just several of those stated here or even more than those stated here.

Although it is recommended that you get emergency road service along with your car insurance make sure you know just what the portion of the policy includes. There might be some services that are particularly important to you that your car insurance company does not offer. In that case it will be wise to either use a different car insurance company or just sign up for emergency road services with a different organization.

Age – Statistics show that drivers 30 years and below are more accident prone than older drivers. Because of this your car insurance rate will be higher if you are 30 or below.

Gender – Although men tend to look down on women’s driving the truth is that younger men are more prone to accidents. So if you are male and under 30 years of age you automatically belong to a group that requires higher car insurance premiums.

Marital Status – If you are married and have kids that are old enough to drive that drives your car insurance higher since the young drivers in the family are taken into consideration.

Car/Vehicle Type – If you can afford an expensive car then you’d also be prepared to have a higher insurance premium. The rationale behind this is that more expensive cars have a higher risk of being stolen. In addition to this high-performance cars like sports cars also usually get into more accidents and cost much more to repair than the average car.

Geography/Location – The area in which you live and spend most of your time is a significant factor since areas have different risk factors attached to them like the crime rate and accident rate. Some areas are just more accident prone but more importantly an area with a high crime rate will surely increase your car insurance rate.

Work distance – The greater the distance you have to travel to and from work the higher your insurance premium will be.

Occupation – A high risk occupation will result in higher premiums. Believe it or not, being a pizza delivery guy will count against you when it comes to car insurance.

Driving Record – Having multiple violations or being involved in a vehicular accident will most certainly hike up your insurance premium. Violations of any kind including speeding and running red lights count against you.

Credit History – Though it might seem completely unrelated car insurance companies have found out that people who have no or poor credit histories usually file more or at least bigger claims than those with good credit histories. Thus, even in taking a car insurance a bad credit rating will hound you. Further, the idea is that people with good credit histories are “safer” and more responsible people and less prone to wreckless driving.

But in case you do get in an accident and you didn’t come prepared then you’ll be happy to know that insurance policies generally adjust automatically to meet a state’s minimum legal requirements. This means that if you took a policy with the minimum liability limit in your state, which just so happened to be lower than the liability limit in the state where the accident happens, then your insurance company will have to take the blow without worrying you. In addition to this even if you are visiting a no fault state then your car insurance policy will also adjust and automatically transform to a no fault policy.

It would be a very good idea to change your insurance if you plan to stay in one state for longer than 30 days. This is because some states will no longer count your car insurance as valid if you do stay longer than 30 days.

If you are a permanent resident of the state where the accident happens but your car is still insured in the previous state you lived in you can be pretty sure that your insurance will be declared invalid. As a permanent resident you are required to get car insurance in that state as well as register the car there too. Note that in general it is only military personnel that are allowed to reside in one place for a long time and yet be declared as a permanent resident of another state.

Related Link: Car insurance get up to 5 free quotes

One of the most common types of car insurance coverage is bodily injury liability car insurance. In fact, bodily injury liability coverage is required in most states. This type of coverage means that the insurance will pay for other people’s injuries or deaths for which you are responsible. In addition to this, the insurance will also cover legal fees in case the other party involved in the accident files a case against you. Possible claims covered by bodily injury are medical bills, loss of wages or income, and even pain and suffering. It is important to note that this coverage does not include you or your vehicle.

Bodily injury liability coverage also includes pedestrians. If you are unfortunate enough to be involved in such an accident, your bodily injury liability insurance will cover the expenses incurred. The other party need not be in any vehicle.

This type of coverage will protect you financially by taking on the expenses per person in any accident. There is, however, a limit as to how much the insurance company will pay for per accident. In insurance terms, the coverage is indicated by a “split limit”. For example, the insurance company will pay up to $50,000 per person injured in the accident and it will pay up to a total of $100,000 for the whole accident. Any costs beyond that would be for you to shoulder.

When taking out bodily injury liability car insurance, you should take your personal assets into consideration. If you do not have too many assets and your income is not that high, then a 50,000/100,000 split would be adequate. However, if you have a lot of assets at stake, you should consider a higher split value, say 100,000/300,000 coverage. If you take out a smaller amount than you need in the future, then you would end up having to shoulder the extra expenses incurred during the accident. That might mean having to sacrifice your assets as you would have to come up with the cash needed to pay for the other party’s needs.

In case the driver is has the financial resources to pay you AND is responsible enough to do so without having to be forced to then you’re one lucky victim. However if you are unlucky enough to be a victim of a hit and run accident and you were unable to trace the identity of the driver then you have no choice but to pay all your medical bills. Another scenario is that the driver is caught but won’t admit to any responsibility and won’t cough up any personal money. In this case you’ll be forced to pursue the driver through legal means which can be costly and in the end might not be worth it especially if the damages you sustained are not that extensive or serious. This also means that on top of the medical bills you’ll get saddled with legal bills as well — a very bleak prospect indeed. And last is the most pitiable scenario wherein the driver is responsible and owes up to his responsibility but is simply financially incapable of compensating you. If you have a heart you not only end up with physical injuries but end up feeling sorry for the driver and in quite a twist as you try to solve your financial problems without bringing the other party to ruin.

To avoid any of the scenarios above you can simply make sure you that you are protected or covered for accidents involving uninsured motorists. You can do this by simply getting an uninsured motorist insurance policy. This type of policy simply covers you in case you get in an accident, whether as driver too or as a pedestrian, that is caused by the negligence of an uninsured driver. This insurance policy will pay for you medical bills arising from treatment of your injuries, the cost to repair your damaged car, and even your approximate wage loss as a result of the accident.

A proactive way of dealing with high insurance premiums is by finding out ways in which you can get a discount. Yes there is such as thing. Different car insurance companies offer different discounts based on different factors. There are some factors that are usually used as a basis for discounts by all car insurance companies. Some of these factors are:

1. Safety mechanisms – If your car is equipped with safety mechanisms such as anti-lock brakes, automatic seat belts, and airbags you might be eligible for a discount from your car insurance. If your car doesn’t have them it might be a good idea to have them installed because the cost for installation will be offset not only by the protection it will afford you but the lower cost of insurance premium you will need to pay. Remember the installation of safety devices is a one-time expense while insurance premiums are a recurring expense. You’ll save money in the long run.

2. Anti-theft devices – Have your car installed with anti-theft devices such as car alarms and tracking systems. Having the devices will not only help prevent your car from being stolen but will also make you eligible for a discount from your insurance. Again the advantages are well worth the expense.

3. Multi-family or multi-policy discounts – If you have more than one vehicle it might be a good idea to get the car insurance policy for each vehicle from the same insurance company. Same goes with the insurance policy for all the family members. Get your insurance policies from one insurance company. Many insurance companies gladly give discounts for multiple vehicles as well as for different kinds of insurance policies taken from their company. For example they might give discounts if you take a car insurance policy and a homeowner’s policy from them.

4. Loyalty – Some car insurance companies offer loyalty discounts for staying with them for a certain number of years.

5. Defensive Driving Courses – Some car insurance companies also offer discounts for policy holders that take driving courses to help improve their driving skills.

As the name implies, property damage liability car insurance ensures that any damage to property that you may have caused will be paid off by the insurance company. What is covered under “property”? Of course, the other person’s car or vehicle is the foremost concern. However, other property such as a fence, or even a mailbox will be covered by property damage liability insurance.

You may think that that being the careful driver that you are, you probably wouldn’t need such an insurance coverage. That may be true. However, you would certainly wish that you had taken out this cover if you get into an accident and damage an S-class Mercedes Benz! More than protecting you financially by paying off damages to property, this car insurance coverage also gives you a legal defense in case the other party files a lawsuit against you.

Different states have different requirements as to the minimum amount you can take out for property damage liability car insurance. Similar to bodily injury liability insurance, this type of coverage has a split limit. So in determining what limits you ought to take, first note what the state’s minimum is. Then determine your assets – which you want to protect in case of an accident. You would also want to take into consideration the worth of the cars on the road today. More than that, if other members of your household drive, you should consider their ages and driving habits as well. Another thing to consider in determining property damage liability limits would be your chances of getting involved in a lawsuit. Some professions which are deemed to be high paying in the eyes of the public are more prone to lawsuits than others. In this case, you might want to set higher limits for your property damage liability car insurance.

The bottom line in setting your liability limits is the value of your assets which will be put on the line. If you do not have too many assets at risk, then you can perhaps settle for the lower bracket limit. Otherwise, it would be wiser to go for the higher bracket in order to protect you in the future.

Different states have different requirements as to what kind of insurance a driver should have at the very minimum. Most states just require basic coverage, which includes bodily injury liability and property damage liability. However, this type of coverage only protects you financially from any injury, death, or damage you may cause to other people or their property. You yourself are not covered by liability insurance.

If you want to make sure that you will be covered in case of an accident, what you need is First Party Benefits coverage. In the United States, only the state of Pennsylvania requires First Party Benefits coverage. In all the other states, this is optional. The basic coverage of First Party Benefits is limited to the medical expenses of the policyholder and other people listed in the policy. This is termed First Party Benefits-Medical.

In case of a really serious accident, however, the First Party Benefits-Medical plan may not be enough to cover the expenses incurred. That is why there is the option of taking out First Party Benefits-Extraordinary Benefits from your car insurance company. In the state of Pennsylvania, this coverage is an optional add-on. That is, if you have taken out First Party Benefits-Medical, you can choose to extend that to First Party Benefits-Extraordinary Medical.

Your First Party Benefits-Medical should have a cap of $100,000. The Extraordinary Medical coverage is then designed to take care of any medical expenses that would exceed the $100,000 limit of the basic First Party Benefits-Medical coverage. The main policyholder, together with members of his household listed in the policy, is covered by this. You can define the limit for your Extraordinary Medical cover, up to a maximum of 1 million dollars.

In a nutshell, Extraordinary Medical benefits coverage is your insurance against an accident of a catastrophic nature that causes major medical needs.