There are many types of auto insurance covers available for vehicle owners, and the type that you go for is determined by factors such as state requirements and your specific needs. You may also want to learn how to get the best coverage among the various types, while still saving money. We shall, therefore, cover the different types of coverage available to a consumer in the US, so as to inform your decision in seeking the best coverage.
This type of insurance covers an eventuality where a covered car accident occurs, and it turns out that your actions caused the crash. It, therefore, covers the cost incurred in the repair of the property that was damaged and the medical bills of the victims. Many of the states in the US have a set lower threshold for the amount of such coverage that drivers should have. However, it is recommended that the driver has liability insurance that exceeds the state's minimum coverage requirement. This coverage provides extra protection if the driver is found responsible for an accident, and is, therefore, has to pay any claims over and above the liability coverage's upper limit.
Collision insurance pays for the necessary repairs to a car that is involved in a covered automobile accident. If the vehicle is damaged beyond repair, such that the value of the car is less than the cost of the necessary repairs, collision insurance pays an amount equivalent to the value of the car. Collision insurance is especially recommended if you have a newer car as opposed to an older car, where it may not be worth it. This coverage is mandatory if the vehicle owner has a lien holder.
Comprehensive insurance covers eventualities that are not related to a covered accident. Liability and collision insurances do not cover these eventualities. Examples of these are car theft or damage by adverse weather. Comprehensive coverage can be pricey, and may not be necessary if your vehicle can be easily replaced. This coverage is also mandatory if the car owner has a lienholder.
Personal Injury Protection
Personal injury protection is especially handy when the costs arising from an accident quickly add up, and it is used to cover these. Personal injury protection is highly recommended. With this type of insurance, the medical bills of the driver and those of his passengers shall be paid without regard to who is at fault for the accident. This coverage may, however, not be available in all US states.
Underinsured or Uninsured Motorist Protection
This type of insurance helps with expenses if you shall receive little or no payment because the person who is to pay for damages from the accident is not insured, or if your costs exceed the amount they are covered for. This situation is caused by the possibility that a driver may not be insured despite the law of the state requiring that they are insured. It may also be that some states have such a small requirement for minimum coverage that it may be inadequate to cover all accident expenses. This type of insurance is relatively inexpensive, especially taking into account the level of protection it offers, and so it is highly recommended.
We hope that the various types of auto insurance covered above shall be an excellent guide to picking the best possible insurance coverage for your automobile. Happy hunting!