Did you know that it is very important to have car insurance? Simply put, insurance helps you in the event of an accident or something happens to your vehicle to be protected. There are many types of car insurance out there and it can seem difficult to decide what types of car insurance you need. The types of auto insurance coverage you are required to have will depend on where you live. So, throught this article, we will help you understand the different options available to you and also help you to be able to find the most affordable rates on car insurance covers that best suit your situation.
1. Bodily Injury Liability
In the event that you injure someone in an accident, bodily injury liability coverage can help protect you from financial loss. For example, if you accidentally run a red light and injure someone, this coverage can help pay for medical treatment outright. Most states require that you have bodily injury liability coverage.
2. Property Damage Liability
In fact, Property Damage Liability coverage pays for damages your car causes to property you don’t own. This therefore includes fences and mailboxes as well as other vehicles. For example, if you take out a neighbor’s mailbox while driving in a heavy rainstorm, this liability insurance can help pay for damages. The most states require that you carry property damage liability coverage.
3. Collision Coverage
In the event that you collide with a vehicle or another object, then collision insurance helps pay compensation for damages to your car. For example, if you return to a tree, that coverage can then help pay for damage to your car. Collision insurance is not required by state laws, but your lender may require you to purchase such coverage.
4. Comprehensive Coverage
If your car has any damage, then the comprehensive insurance pays to repair all these damages, which are:
– natural disasters
– theft
– vandalism
Collision with an animal
Assuming you park your car under a tree and heavy snow takes a branch that breaks your windshield, comprehensive coverage, often called “other than collision coverage,” can then help pay for repairs. Just like collision coverage, comprehensive insurance is not required by the state, but if you finance or lease your car, the lender may require you to have it.
5. Uninsured/Underinsured Motorist Coverage
In the event that you are injured by a driver who does not have car insurance or does not have sufficient car insurance to cover the costs of damages and injuries, then the coverage of uninsured drivers helps cover the damages, and this insurance is divided into three coverages, which are manifested in the following:
• Uninsured motorists bodily injury coverage helps pay for bodily injury costs for you and your passengers in the event you are hit by an uninsured driver or a hit-and-run driver.
• Uninsured Driver’s Property Damage coverage helps pay for damages to your car if it is hit by an uninsured driver or a hit-and-run driver.
• In the event that you are involved in an accident with a driver who does not have adequate insurance, the coverage for the uninsured driver helps pay the costs of bodily injury.
• Coverage for uninsured drivers is not required in all states. You should be aware that it is very important that you check with your state to see the minimum requirements for coverage for uninsured drivers where you live.
6. Medical Payments Coverage
As for covering medical payments, it helps pay for medical and rehabilitation expenses as well. But this optional coverage may not be available in all states. However, if you are involved in a car accident in another state, and you have medical payments coverage, your coverage is valid regardless of where the accident occurred.
7. Personal Injury Protection (PIP)
Personal Injury Protection (PIP) insurance, also known as liability insurance, effectively helps pay for losses related to injuries caused by a car accident, regardless of who was at fault.As well as to the medical bills, personal injury protection (PIP) can also help cover funeral costs or lost wages. You should keep in mind that this is not available in all states, but it is required in certain cases.
There are additional types of car insurance coverage that you may need, which are as follows:
Full glass coverage
Full auto windshield insurance can help pay for headlights, mirrors, and window repairs on your car without any deductible. Suppose, for example, that a thief broke into the place by smashing your car window. So the estimate to fix it is $600. In the event that you only have comprehensive auto insurance, you will then pay the deductible before your policy begins repairing your windshield. And with Full Glass Coverage, the entire cost of window repair will be covered without any out-of-pocket costs. You should keep in mind that this type of insurance can vary by state and is not always available.
Car Towing Coverage
In the event of a breakdown, the Towing Cover helps pay the towing and labor fees associated with getting your vehicle back to work. For example, if your car battery dies on the highway, then this coverage can help pay for your car’s start-up costs. Towing coverage is optional and your state will never require this coverage.
Personal Umbrella Insurance
In fact, personal umbrella insurance goes beyond all accidents and damages. It can help you if the covered loss exceeds the liability coverage limits of your home policy or car insurance policy as well. For example, if someone sues you and your damages are more than the liability limit on your basic coverage, then comprehensive insurance can help pay for the excess costs. This coverage is optional and not required by law in any state, but you may want to add it to your existing coverage for additional protection.
Gap Insurance
Gap insurance can help you pay the difference between the actual cash value of your car as well as the amount you owe on the car loan if it is stolen or collected. It is noticeable that most people buy this coverage for leased or financed vehicles.
State law does not mandate this type of coverage, but in the event that you have an auto loan, gap insurance may be a coverage requirement from the lender.
Rental Car Reimbursement Coverage
In the event of a covered loss or collision, then Rental Car Reimbursement Coverage helps pay for a rental car. For example, if you slipped on a wet road and hit a tree while driving, this coverage could help pay for your replacement car rental while your car is being repaired. In fact, this coverage is not required by law in any state, but if you are involved in a car accident and are temporarily unable to use your vehicle, this coverage may be optional and useful.
Rental Car Insurance
If you rent a car for leisure, then you will need liability coverage. Rental companies typically offer car rental insurance in the form of a collision damage waiver or loss damage waiver. And if the car is damaged or someone breaks into it, signing these terms will result in you not being held financially liable. However, your current car insurance may also cover damage to your rental car if you are involved in a car accident. In the event that you are planning to rent a car, then we advise you to contact your insurance company in advance to confirm your coverage.
