When you’re looking for budget car insurance, it’s important that you know all the facts first. Nobody wants to pay more than necessary for their automobile insurance, but you don’t want to get stuck with a big repair bill after an accident, either.

At a minimum - personal liability insurance is a legal requirement. Should you be involved in an accident, whether the other driver is at fault or not, if the policy discover that you are without this insurance, there will be steep penalties. Don’t even think about driving without this minimum level of insurance.

There are some issues you need to be aware of before you choose your liability insurance. The type of insurance called “bodily liability” does not cover your own injuries, only injuries inflicted on others if the accident was your fault. It also does not cover damage to either your own vehicle or the vehicle or vehicles you damaged.

Damage to another’s property, including their car, is covered by Property Damage Liability Insurance. Their property may also include their home and its surrounds or their business property. It should be emphasized that it does not cover your property.

Liability insurance is required is because in any instance, there is a driver at fault in an accident. If you are at fault, your insurance policy covers the other driver. If they are at fault, their insurance covers you. But remember, if you are in an accident and it’s your fault, you could be injured and your car will certainly be damaged to some extent. Anyone who has faced the bill for something as minor as a “fender bender” knows just how expensive car repairs can be. Even a minor accident can easily cost far more than the one’s insurance premiums.

If you have a new or near new car, you should seriously consider getting collision insurance. This is the type of insurance you need to cover damage to your vehicle if you are the one who causes an accident.

Comprehensive insurance has a very misleading name and many people believe that it is the kind of insurance to buy if you need insurance that covers you whether you are at fault or not. In fact, comprehensive insurance only pays out in case your car is stolen or is damaged by natural acts (fires, floods, etc.).

There are other types of insurance that should be looked into as well. The best thing to do is to get comparative quotes online for all types of insurance and then get the most coverage you can for your dollar. You will be surprised by how much you can save by getting budget car insurance online.

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