Are you currently shopping for car insurance, but not sure how much insurance you actually need? It will help to break down the six types of car insurance you can purchase so that you know exactly what you are getting.
The one type of insurance that everyone must have is liability insurance. This is because it is designed to protect other people when you cause an accident. It will be for damages to property, medical bills, car repairs, and things of that nature up to your coverage limit. However, liability coverage doesn't protect you or your car at all in an accident that you cause
Collision coverage is what you need to cover your vehicle when you are at fault for causing an accident. This type of insurance is required when you are leasing or financing a vehicle, but it is optional if you own the car outright. Just keep in mind that collision coverage protects just your vehicle and not the medical bills of those involved in the accident.
Comprehensive coverage will help pay for damages to your vehicle that are not the result of an accident. This includes vandalism, theft, and natural disasters like flooding and falling trees. This is another type of insurance that's required when leasing or financing a car because it protects the vehicle from being abandoned if significant damage happens to it.
Uninsured And Underinsured Motorist
Worried about getting into a hit-and-run accident and needing to pay for repairs, or have concerns about what to do if the other driver doesn't have enough insurance to cover the damages? This is where uninsured and underinsured motorist coverage comes into play. It helps you avoid the hassle of going after the responsible driver when they cannot pay for the damages to your vehicle. That's because car insurance only pays out up to the coverage limits. Beyond that, you'll need to sue the other driver to be compensated for what remains.
Medical bills can add up quickly in an accident, which is where PIP (personal injury protection) comes into play. This helps pay for the financial losses you incur from being injured in an accident. This includes medical bills, lost wages, and even funeral costs if you were to be involved in a fatal car accident. While only some states require PIP, you can always buy PIP if you want to have it.
For more information, contact a local auto insurance agent.