When you are considering car insurance options, think about different situations where you might need coverage. Where you live might come into play as well. Let’s look at some scenarios and see what works best for you.
You Injure Someone In A Crash
Hopefully you will never need to use this insurance, but in most states it is required by law. Let’s say you are in a crash and injure another person. Maybe it’s a serious injury, and they need surgery or other medical care. Obviously this can end up costing a lot of money. In this case, liability insurance covers the costs. Even the wages lost by the injured party can be covered by liability.
Now if the person turns around and sues you for the accident, liability insurance may also cover the court costs. Plus, any damage done to property due to an accident falls under liability coverage.
Someone Breaks Or Steals Your Car
Let’s say some misguided kid throws a rock at your car and breaks the windshield. Or maybe your car gets stolen. In this case, comprehensive insurance would cover the damages or the estimated cost of the car.
Comprehensive insurance also covers damage from natural disasters such as fire, wind, hail, and flood. What comprehensive doesn’t cover is any type of auto accident damage.
You Get Into An Accident
If you crash into a wall, fence, or another car, the coverage you need is collision. This pays for damages even if it’s your fault.
You Hit An Animal While Driving
It might seem logical that collision would cover this, but actually, many insurances place this under comprehensive coverage. After all, deer are a part of nature, right?
Miscellaneous Types Of Insurance
Liability, comprehensive, and collision are the three main types of insurance. Some insurance providers also offer these options:
- Medical – Pays medical expenses for injury in an auto accident. This covers costs no matter who is at fault.
- Personal Injury Protection – Some states actually require this. Also called PIP, this covers medical expenses for the insured driver.
- Uninsured/Underinsured Motorist – If you get into an accident with someone who has no insurance, or insufficient insurance, this category is a backup that pays for the damages.
- Rental Reimbursement – This add on pays for a rental car while repairs are being made to damages due to an accident.
How Much Insurance Do I Need?
Now if you want to spend as little as possible, you might only go with the state required liability insurance. However, if you live in the city, vandalism or theft might leave you with a large expense and nothing to pay for it. Adding some comprehensive coverage might not be that much more expensive per month, so it pays to ask.
Plus, if your car would be very expensive to replace, comprehensive and collision are probably both good to have on board.
I Have More Questions
Car insurance doesn’t have to be complicated. Educate yourself and see what your budget can handle.
We’d be happy to answer your questions. Give us a call at 1-877-CARCHEX (1-877-227-2439). Or get an online quote now.
Published in CARCHEX Auto Insurance Resources by CARCHEX on November 11, 2014