It's a well-known fact that everyone is required to buy auto insurance across the country, but what type and how much must you buy? There are more types of auto coverage than you may be aware of.
This article will discuss the main coverages, but it's recommended that you speak with an insurance agent to determine the right policy for your needs.
In every state, you're required to buy liability coverage (though the amount varies from state to state).
This coverage protects everyone else involved in an accident that you cause, including damage to their vehicles and medical expenses associated with injuries they suffer during the collision.
Depending on your finances, consider purchasing more than the state's minimum limits of liability insurance.
Why? If damages or injuries exceed the limits of your policy, there's a very good chance that the other driver(s) will lawyer up and come after you for the rest of the money to cover their expenses, and possibly even more funds for the pain and suffering they endured at your hands.
Liability coverage can cover the costs of repairing or replacing the damaged property of a third party, the expenses for medical treatment for injuries, and even lawyer fees if a driver decides to sue.
Though this is the only coverage that is required by all drivers, many other forms of coverage provide benefits to millions of drivers.
Collision coverage, the next most popular type of insurance, protects your car after a collision.
If the other driver's liability coverage doesn't cover your car's damages, or if you cause the accident, collision coverage can kick in and pay for the repairs or replacement of your car, up to policy limits.
Of course, you'll still have to pay the deductible first, which can be raised in order to reduce your monthly premium.
Depending on your policy, this coverage may also include the cost of a rental car while your car is in the shop.
Comprehensive coverage opens up the web of covered events.
While collision coverage only covers damages caused by a car accident, comprehensive coverage can cover damages from other sources.
Some examples include fire, hail dents, carjacking, collisions with animals and so on.
Even though it's required, some drivers neglect to purchase insurance, or simply purchase the bare minimum that may not offer adequate coverage.
Uninsured/underinsured motorist coverage protects you if one of these drivers causes an accident that you're involved in.
Medical expense coverage can pay for the cost of your medical treatment following an accident that you cause, or one caused by an uninsured/underinsured driver.
A qualified insurance agent can help you build a policy that includes the coverages you desire for varying levels of on-the-road protection.