The Types of Car Insurance You Should Consider
This is not always as simple as purchasing the first policy you find, or the minimum required in your state.
You need to thoroughly research all of your options before you make a choice.
First, you will need liability coverage.
This coverage covers any damage that you are held legally responsible for while driving your vehicle.
This does not necessarily mean the damage was your fault directly, but it does mean that you are "at fault" in the eyes of the law.
This form of coverage can be either bodily injury coverage, which pays medical expenses, lost wages, pain and suffering, and other payments to people who are injured, or property damage liability, which covers damage to property.
If you have any legal costs as a result of your accident, this coverage will also pay those.
Another type of policy that you may wish or be required to purchase is personal injury protection.
This portion of your car insurance pays for your medical expenses and other expenses due to injury after an accident, regardless of who was at fault.
This can include funeral expenses and replacement of services, like childcare if a parent is killed or disabled.
This protects you in the event that you cause an accident in which you are injured.
Car insurance doesn't just cover medical expenses.
It can also cover your vehicle.
Collision coverage pays for damage that occurs to your vehicle because of a collision with a vehicle or object or a vehicle rollover.
This form of coverage is rarely required by law, and you will want to weigh the cost of the insurance over the value of your vehicle.
Collisions and accidents are not the only times your vehicle can be damaged.
You could have theft or vandalism, fire damage, or storm damage.
You may also have damage if you hit a deer or other animal.
This type of damage is covered under comprehensive coverage.
Most loan providers require both collision and comprehensive coverage on all vehicles that they provide the funds to purchase.
Another type of coverage you might want to consider when purchasing car insurance is uninsured or underinsured motorist protection.
This coverage kicks in if you suffer injury or damages beyond what the at-fault driver's coverage pays.
If the driver has no coverage or minimal coverage amounts and you sustain serious injury, you will be left holding the bill unless you have coverage for this event.
Most policies also come with coverage for rental vehicles and some form of emergency roadside service.
Often this is simply included as part of the plan, rather than an added service benefit.
Find out what types of smaller services like these are offered with your policy, especially if you are considering two similar policies with similar costs, coverage, and deductible amounts.
This will help you make the final decision about which car insurance is best for your needs.