5 Types of Car Insurance Coverage That You Need to Know About
It is often a legal requirement to have car insurance before you can legally take to the roads. However, legalities aside, car insurance is simply a great investment to make. The unexpected can happen at any time, including when we are behind the wheel of a car, so it is wise to purchase an insurance policy that will financially safeguard you after an accident.
Unfortunately, it can be overwhelming to navigate the world of car insurance policies. Which ones do you really need? Which forms of insurance are required by your government? Which ones will protect you in the most likely of scenarios? This article is a great place to start. Below, we’ll outline 5 of the most beneficial forms of car insurance that anybody can – and should – obtain, if possible.
Liability insurance is considered the bare-bones minimum for vehicle coverage. If you are in an accident that is deemed your fault, your insurance company will pay for the repairs to the other person’s vehicle, as well as any accrued medical expenses stemming from the accident. You should obtain liability insurance that slightly exceeds the minimum requirement in your area, as you will be on the hook for any expenses that your policy does not cover.
Comprehensive Vehicle Coverage
Cars can become damaged by forces other than accidents. Weather, vandalism and theft can also affect cars, but liability and collision coverage won’t pay for these repairs or replacements. This type of coverage is pretty expensive for most budgets, but it is worth it if you live in a high-crime area or a location that is prone to inclement weather that could damage your vehicle.
This type of coverage protects you and your vehicle if you are in an accident, whether you were to blame for the accident or not. If it is decided that your car is totaled, meaning that the cost to repair it exceeds the value determined by the insurance company, collision coverage will pay to replace the vehicle. This is especially recommended for newer or more highly-valued cars.
Personal Injury Protection
Where liability insurance covers the medical costs of the other party in the event of you causing an accident, personal injury protection covers your medical expenses as well as those of your passengers’. It doesn’t matter who is at fault.
Under/Uninsured Motorist Protection
Not everybody who drives has insurance, even though it is the law. Sometimes, the insurance policies that they do have aren’t enough to cover the damage sustained by your body or vehicle in an accident. If you find yourself the victim of an accident caused by an uninsured or underinsured driver, this protection will help shoulder the costs.