The roads can be a hazardous place and every time you hit the road, you and your vehicle are at risk. Car insurance helps to protect you from these risks and is essential for every car owner to have not to mention it’s required by law in most states to purchase a minimum amount of liability coverage for your vehicle even if the car is not in circulation. If you do not have liability insurance, you may have to pay out of pocket for property damage and bodily injury costs to others even if the accident was not your fault. Car insurance, as said, is a general necessity and you should get the coverage that best suits your needs.
Auto Insurance covers you from various unforeseen and unfortunate incidents such as a collision, theft, flood damage, fire, falling objects, and natural disasters. Auto insurance policies have different pricing depending on the coverage, so choosing the right policy for you is an important decision. Pricing is based on several factors, primarily your driving record, driving experience, the value of the car, place of residence, and even if you are married or single affect the price of your policy. Choosing the right insurance agent to advise you is just as important. Your insurance agent will be able to help you determine your state’s minimum requirements. Then, you can decide how much coverage you may need beyond the mandated minimum. Being familiar with the different types of car insurance will help you get the policy that’s best for you.
Choosing The Right Car Insurance
Liability Insurance
Apart from being mandatory in most states, it covers the cost of repairs in the event of an accident that you are found to be at fault. Liability insurance covers damages to property and medical bills from resulting injuries. While liability insurance is relatively cheap it usually does not cover damages to your vehicle in the event of a collision, theft, fire, or other disasters no matter who’s at fault.
Collision Insurance
If you have a new car that you haven’t completely paid off yet and you are still making payments on it, you will need collision insurance. It is typically required by the lender and covers damages done to your vehicle in the event of an accident, regardless of who is at fault. With this coverage, your car will be repaired or replaced. On most Collision insurance policies there is a deductible and you can decide the amount of your deductible with your insurance agent before you buy your policy.
Comprehensive Coverage
Comprehensive coverage is insurance that covers damages when you are not involved in a collision. Typically, it includes fire, theft, vandalism, flood, hail, falling objects, and hitting an animal. Like collision coverage, if you are still making payment on your vehicle your lender may require you to get comprehensive coverage and you pay your deductible. It would be good to consider if you live in an area with extreme weather conditions or natural disasters.
Gap Insurance
Gap Insurance is an option to consider if you have a car loan and what you owe is more than the car’s resale value due to depreciation. Gap insurance will cover the difference in case your car is stolen or is considered a total loss due to an accident. Gap insurance is sometimes required by your lender.
Uninsured Motorist Or Underinsured Motorist
While auto insurance is required in most states it is not uncommon that some drivers might be uninsured or are underinsured and may not cover the cost of your car damages or bodily injury expenses. Even if the driver has liability insurance it may not be enough to cover the expenses of the accident. Having an uninsured and or underinsured motorist policy will not only help you cover these expenses but will also protect you from hit-and-run drivers.