Most states have statutory minimums on how much liability coverage you should have. It's often a good idea to carry more than you need to reduce the chances of having to pay out of pocket later on. Collision coverage helps cover the costs of repairing your vehicle regardless of fault. The collision doesn't cover if you hit an animal or if your car breaks down because it's too old and unreliable.
Comprehensive coverage is typically sold along with collision coverage. Think of them as peanut butter and chocolate. When it comes to car insurance, it's important to understand the different types of coverage available and how they can help protect you in the event of an accident or other incident involving your vehicle. Liability insurance, collision coverage, comprehensive coverage, protecting uninsured or underinsured motorists, and full coverage insurance are all important types of car insurance that can help protect you financially in the event of an accident.
Liability Insurance
is a type of car insurance that covers you in the event that you have a covered car accident and the accident is determined to be the result of your actions.Liability insurance will cover the cost of repairing any property damaged by an accident, as well as the medical bills for the resulting injuries. Most states have a minimum requirement for how much liability insurance coverage drivers must have. However, if you can afford it, it's usually a good idea to have liability insurance that exceeds your state's minimum liability coverage requirements, as it will provide you with additional protection if you are found guilty of an accident, since you are responsible for any claim that exceeds the maximum limit of your coverage.
Collision Coverage
is another type of car insurance that will pay for repairs to your car if there's a covered accident. If your car is destroyed (when the repair cost exceeds the value of the vehicle) in an accident, collision coverage will pay for the value of your car.Collision coverage does not cover damage caused by animals or mechanical breakdowns due to age or wear and tear.
Comprehensive Coverage
(other than collision coverage) is a type of car insurance that covers damage caused by things like weather damage, hitting an animal, or having your car stolen. Comprehensive coverage is typically sold along with collision coverage.Protecting Uninsured or Underinsured Motorists
is a type of car insurance that helps with expenses if someone is legally responsible for damages related to an accident but does not have enough coverage or any coverage at all. This type of insurance can help protect you from having to pay out-of-pocket for damages caused by someone else.Full Coverage Insurance
often consists of collision insurance, comprehensive insurance, and at least the minimum coverage required by state law. Full-coverage auto insurance can vary greatly depending on the state and the car you drive, since the types of coverage are based on the actual cash value of the car.The law may also require additional coverages in some states, such as personal injury protection and medical payments. When it comes to saving money on car insurance premiums, there are several strategies you can use. One way is to shop around for different policies from different companies and compare their rates. You can also look into discounts offered by different companies for things like having multiple policies with one company or having a good driving record. Additionally, raising your deductible can help lower your premiums. It's important to understand all five types of car insurance coverage so that you can make sure you're adequately protected in case of an accident or other incident involving your vehicle.
Knowing what type of coverage is required by law in your state can help ensure that you're not paying for more than what's necessary while still providing yourself with enough protection.
