Important Types of Auto Insurance Coverage Every Car Owner Should Have
As a car owner, you want to be assured that the auto insurance you purchase can adequately cover your expenses in case of an unfortunate incident. After all, you are not only protecting your investment but also your life. In addition, the insurance policy should also be able to protect you against possible lawsuit.
But how do you know what coverage you need? Considering the different types of car insurance coverage can be very overwhelming. Listed below are some of the most important auto insurance you should have.
Liability: This is one of the most important coverage which is required in most states in the country. If you get into an accident because of your negligence or driving behavior, this type of policy will pay for the damages and can protect you against a possible lawsuit. This policy will cover the cost of repairing the property damaged due to the accident. It will also pay for the medical bills and other resulting injuries.
As a tip, it is a good idea to have a liability insurance coverage that is more than your state’s minimum liability coverage requirement. This will provide you with added protection in case you are found at fault for a car accident.
Collision: This type of policy helps pays the damage done to your car in case you get into an accident. For instance, if your vehicle gets hit by another car or object or if your vehicle rolls over, your insurance policy will cover the expenses. This type of coverage is required if your vehicle is financed or leased.
If you have an old car, it is best to forgo this policy as it may not be worth purchasing. On the other hand, if you have a newer, more expensive car, collision insurance will help protect your investment and your finances.
Comprehensive: This is very important in case something happens to your vehicle that is unrelated to any of the covered accidents, such as weather damage, theft, vandalism, and natural calamities. Keep in mind that liability and collision coverage only cover the damages caused by accidents, but it doesn’t cover these types of situations.
This type of insurance is very important, especially if you have enough budget for it. To help lower your insurance rate, you can consider installing car safety features and anti-theft devices on your vehicle. Comprehensive coverage can be costly and it is not always necessary; however, unfortunate situations might arise thus, it is better to be safe than sorry.