Sunday, August 3, 2008

Auto Insurance Online : Cheap High Risk Auto Insurance Online

Auto Insurance Online

Most people would love to find cheap car insurance and most people know that the best place to find the cheapest auto insurance is online. And for those people who are serious about saving money every month on their auto insurance, cheap high risk auto insurance online may very well be the way to go.

Basically you have two choices when you are buying auto insurance: full coverage or cheap high risk coverage, also known as a basic liability policy.

Every state requires its drivers to buy at least a basic liability insurance policy if they are going to legally drive a vehicle on public roadways. Each state sets its own minimum amount of liability insurance that it requires its drivers to purchase in order to legally drive.

While each state can set its own minimum amount of liability insurance, such insurance is always written as 3 numbers, such as 10/20/10.

In this example (which may differ in your particular state), the first "10" is the maximum medical payment ($10,000) that the insurance will pay to any one individual involved in an accident with your vehicle. The "20" refers to the maximum amount ($20,000) that the insurance will pay for the medical needs of everyone in the other car (or cars) that are involved in an accident with your vehicle. The final "10" refers to the maximum amount ($10,000) that your insurance will pay for property damage - this generally refers to the repair or replacement of the other person's vehicle, but may also include other damaged property as well.

A basic liability policy pays nothing toward repairing your vehicle and will pay nothing for your medical bills or for the medical bills of anyone in your vehicle.

What makes this type of insurance such a high risk for you is that the payments that a basic liability policy makes may not come close to actually paying the medical bills or the property damage caused by an accident.

If the bills are higher than what the insurance will pay, and you are found to be at fault in the accident, you could be held financially responsible for the unpaid portion of any bills. This could result in your life savings being wiped out or even result in the forced sale of your home.

However, if money is an overriding issue and you want to find the absolutely cheapest high risk auto insurance available in your state, then you'll want to find at least 3 websites that let you compare the cost of auto insurance in your state and check out the prices for basic liability insurance.

Be sure to look on at least 3 different websites, since each site will only show you the prices from a limited number of insurance companies. Once you have looked at prices on 3 different sites all you need to do is to pick the lowest price you find and you've done it! You've found the cheapest high risk auto insurance available in your state.