Types of Automobile Insurance

Types of automobile insurance you need can vary depending on whether or not you are simply trying to meet your legal obligations versus what may be most practical for you and your automobile. In order to make the best decision regarding the types of auto insurance out there for your use, it is important for you to understand the various options and the risks of having no auto coverage. By taking a look at each of the types of insurance for your automobile that are out there, you can start to put together a plan for the policy that will best suit you. From there, it is just a matter of finding out your options so you can compare rates.

Liability and Collision Insurance

The two big types of car insurance you will run into are liability and collision. Most states will require you to have some level of both because they cover many situations you would run into when it comes to car accidents. Though they are different, most policies include both.

Collision insurance covers just what it sounds like: collisions. Specifically, it covers damage to your automobile that is caused by a collision for which you are at fault. This is the case whether it is a single car accident or there is another vehicle involved. When another vehicle is involved, though, you may run into issues that require liability insurance.

Liability insurance covers other costs for which you may be liable when you are the party at fault in an accident involving another person or another person's property. This is important because it covers most anything that could happen in such a situation. Most liability quotes will include coverage for property damage, medical expenses, pain and suffering costs, and even courtroom fees.

Together, these two types of auto insurance can help keep you out of serious trouble in case of an accident. Most states require you to have some level of coverage with both. Check the requirements for your state before making a purchase so that you can be certain you are driving legally.

Comprehensive Automobile Coverage

Another type of coverage you may want to consider for your automobile is comprehensive. This type is there to cover damage and loss that is not from involvement in any type of collision. For example, comprehensive will cover your automobile in case of theft or vandalism. Additionally, it will usually cover damage from natural disaster or acts of nature like hail, wind, flood, and even fire.

In other words, even if it is not required, this is one of the types of automobile insurance you should consider just for your own peace of mind. Since many instances of damage are caused by an accident, it is easy to forget about some types of insurance coverage. However, like with the comprehensive coverage for your vehicle, there are types worth considering for your car when you are out looking for quotes.

Others Worth Looking At

In addition to the types already covered here, there are coverages that, depending on your personal situation, are worth considering. Each offers benefits to the right vehicle owner, but may not be necessary for everyone. Consider your own habits and resources before making a decision.

One of the types of auto insurance that many go with is under insured or uninsured motorist coverage. This type will cover costs if you are involved in an accident with someone who does not have enough coverage or if they have none at all. Even though this is illegal, it also happens and either way you are stuck with a bill you may not want to or be able to pay.

Personal injury protection is another that may pay off. This is one of the types of vehicle insurance that covers the driver. No matter who is at fault in the accident, personal injury protection will cover the driver. Obviously you will want to consider your own medical coverage before considering whether or not this is for you. The same is true of most types of automobile insurance that are not required by law.

As you can see, there are many types of automobile insurance out there for you to consider. Each of the types has its own function and cost. By understanding a little more about which types of coverage are out there for you, it is easier to make decisions about which is best for you and your situation. As you work with your insurer, be sure to inquire about not only what is required by your state laws, but also about what may fit best for your driving habits and financial need. In the end, you may find that you can drive with more confidence and peace of mind by knowing your coverage is not just legal, but also fits you.


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