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Types of Car Insurance Coverage – What You Need to Know

Insuring your vehicle properly is essential. When you finally get a new car before you take it on the open roads you will need to purchase auto insurance, that too knowing the types of car insurance coverages will be beneficial for you.

Of course, choosing the cheapest insurance policy may seem like the best approach to save money on your monthly premium. Although, not having a full understanding of all the insurance policies and what would be right for you could be costly to you in the long run. Not having the proper education with your insurance policies from the beginning, can cost you thousands of dollars in the instance of a claim. So taking the time to do your research and fully understand the insurance policies that are offered is crucial, it can save you hundreds or even thousands that you would need to pay out of pocket.

There are many players in the insurance space, all offering the same types of coverage at different price points and their own little twists and add-ons. Read below to get more information about the insurance policies on the market and what you think would be best for you.

If you prefer to be connected to your local insurance company please click here to get connected directly.

The Insurance Breakdown

Insurance policies can be a bit confusing when you’re deciding. Each types of car insurance policy comes with perks and deductibles and their own monthly premium. We highly recommend you understand these policies that are offered, some are required by state so knowing their benefits and how they affect you in the time of an insurance claim can be very beneficial or consequential.

Here are the types of car insurance policies offered by companies on the market:

Comprehensive Insurance

With many insurance companies, comprehensive insurance is an optional coverage. Although it is something to consider when you own an expensive car or live in states that have heavy weather conditions from time to time. So what exactly does comprehensive insurance coverage cover?

  • Vandalism
  • Theft
  • Weather Damage
  • And More

These are just few of situations that are covered under your comprehensive insurance coverage. Comprehensive insurance coverage may require a deductible or a deposit when you decide on this coverage. For an accurate and detailed explanation please connect with an auto insurance provider.

Liability Insurance

Liability insurance is mandatory in many states. Refer to your state law about mandatory insurance and minimum requirements or a live agent will be able to help you.

Liability insurance covers you in the instance you are at fault in an accident. For any property damage or medical bills that need to be covered due to the accident your liability insurance will be able to cover it. This policy is divided up into two different types:

  • Bodily Insurance – Covers medical bills and payments
  • Property Insurance – Covered damages to the other persons property

It is always recommended that you purchase a higher coverage than what is required by your state. This will give you ample coverage in case you are liable in an insurance claim. For accurate information please contact your insurance provider.

 

Personal Injury Insurance

Personal injury insurance is required in some states, yet optional in others. It is highly recommend that you purchase this insurance policy. In case you are ever in an accident and deemed at fault, most of your medical bills will be covered. This is a coverage that you should purchase. Please contact your insurance provider for all information regarding personal injury protection.

Collision Coverage

When purchasing a new vehicle, this could be a great option if you have purchased a brand new car or even have a car that is so dear to you. In the case of an accident, your insurance company will be able to cover the damages and repairs to the vehicle. Of course that is based in a minor accident. If you were involved in a major accident and when your vehicle has been accessed on damages, if the total cost for repairs and damages have passed the actual value of the vehicle it will be deemed a total loss. In that case your insurance company will pay you the actual cash value of your vehicle during the time of the accident. Please contact your insurance company for all information regarding collision insurance.

Uninsured Policy

If you were in an accident where you have been in an accident with a driver who has no insurance and has been deemed at fault. Your insurance company will be able to help reimburse you for damages. Please contact your insurance company for all information regarding uninsured drivers.

Underinsured Policy

If you were ever in an accident with an underinsured driver, you will need to file a claim. In this situation you may not get sufficient reimbursement for the damages and bills. Your insurance company will then help you investigate and either get your claim approved and you will receive full compensation for the damages that happened during the accident. Please contact your insurance company for all information regarding underinsured drivers.

Summary

If you are looking for information about the types of car insurance coverages that will be available to you. You can contact your local insurance company or check out our recommended list for the biggest companies in the insurance space today.