Perhaps you have never taken out an auto insurance policy, and you are wondering what options you have. What does auto insurance cover? I will examine five types of insurance coverage provided by car insurance companies.
So what are the various types of auto insurance coverage?
1. Comprehensive Coverage
You have probably heard the term comprehensive coverage at one time or other but didn’t know what it means. Comprehensive coverage covers situations that don’t involve accidents – for instance, weather damage, hitting a deer on the highway, theft, falling objects, among others.
2. Liability Insurance
What happens when you get involved in a motoring accident, and it’s proved to be a result of your actions? Liability insurance covers the cost of any repairs to property damaged by the accident and any medical bills from resulting injuries. Most US states have a minimum liability Auto Insurance Coverage amount they need every driver to have. Ensure yours is higher than the state’s to be on the safe side.
3. Collision Coverage
Collision coverage covers repairs for your car in the event of an accident. When your car is totaled, repair cost exceeds the car’s value; when this happens, collision coverage pays for the car’s value. This coverage suits younger, more expensive cars than old jalopies.
4. Uninsured/Underinsured Motorist Protection
What if someone else bears the responsibility of an accident which destroys your car but he/she is either not insure or is underinsured. Though state laws require that all drivers should be insured, some drivers are not. In such a situation, you will either get less money than you need to cover the cost of damages or receive nothing at all. In this case, uninsured/underinsured motorist protection will cover you, and help you with these unforeseen expenses.
5. Personal Injury Protection
Personal injury protection, I must say, may be the most significant auto insurance coverage you will take. If you can’t pay for a vehicle’s repairs, you can live with that. But what if it’s your body which is broken and battered? What if it’s your family or friends? Bodily injuries won’t wait for you to gather funds. They come with an urgency that demands immediate attention. Personal injury protection covers any medical bills that come in case of an accident, regardless of who is at fault. It will cover both you and your passengers. However, it is not available in some states.
Before you decide which type of coverage you want, do your research to find out what it means in your state, what it covers and doesn’t cover, and how much it costs. Also, meditate on your situation, and figure out your most likely automobile-related risks to ensure you take out the most appropriate Auto Insurance Coverage.