Knowing the auto insurance coverage types not only helps you choose which policy you need, but also which coverage you can save more money on. But technically, the kind of auto insurance you need depends on various factors such as your budget and the vehicle you are using. To help you understand more about auto insurance, we have detailed the coverage types that you may need.
Auto Insurance Coverage Types
Liability insurance basically covers you if you are in a car accident where the same was a result of your actions. This will normally cover the cost of the repairs of any property damaged due to the accident. Resulting injuries and medical bills are also covered depending on the coverage limit. Most states require a minimum requirement as to the amount of liability insurance a driver must get. However, if you need extra protection and coverage, and if you can afford it, it is better not to settle to just the minimum.
This coverage will pay for the necessary repairs and possible replacement for your car in case you get involved in a collision. If the total value of the repairs exceeds the value of the vehicle, the coverage will pay for the replacement of your car. People with expensive and new car are more likely to get collision coverage. Logically, newer and more expensive cars need more protection than older ones.
Not all damage is due to an accident and one of it is misfuelling. Try to ask your agent to review your insurance policies and see if you have misfuelling coverage. In order to protect your vehicle from any damage due to reasons other than accident, you need comprehensive auto coverage. This has wider coverage than liability and collision insurance. It provides protection in case of theft, weather damage and other causes of loss or damage. However, this coverage costs more than other insurance coverage. But the amount still depends on your vehicle. If you install tracking and anti-theft devices in your car, you can make the coverage affordable. If you are thinking of commiting fraud claims by misfuelling, try to remember that insurance companies has ways of insurance fraud detection.
Personal Injury Protection
This is perhaps the most important auto insurance coverage type you should have. Personal injury provides protection when you are in an accident, even if it was your fault. It will pay the medical bills and covers yourself and your passengers. This is important because accident-related expenses can quickly add up. The only downside of this coverage is that it is not available in all states.
Uninsured/Underinsured Motorist Protection
Driving without insurance is illegal. Despite the state requirements on insurance, there are still many drivers that are either uninsured or underinsured. While you are insured, you can still get into trouble if you get involve in an accident where the other driver doesn’t insurance. In the event that someone is legally responsible for any damage on your vehicle due to an accident, you won’t receive any payment or you would receive les if the other driver is uninsured or underinsured. If you want to make sure that you are extra protected from such scenario, you need to get uninsured/underinsured motorist protection coverage.