Friday, September 5, 2014

Knowing Your Auto Insurance Coverage Types

A Guide to Different Car Insurance Types for Different Incidents


coverage types
Plan ahead for your coverage needs


It may be your first time on the road and you require insurance, or you may be looking to enhance your existing auto insurance policy to gain greater protection. No matter the case, it is a good idea to know what types of coverage are available. You need auto insurance coverage in order to drive legally in most states, and this guide can be a basic primer on the different types and how they can protect you in case of an accident.

Liability Insurance
 
This is the most basic form of auto insurance. It covers you in case of an accident should it be determined you were at fault. This insurance type will help cover the costs associated with repairing any other cars involved in the accident, as well as repairing any non-vehicular property such as walls or landscaping. Liability insurance also has provisions for paying medical costs associated with accident derived injuries to other parties. Each state has a minimum amount of coverage required for liability insurance, but it is a good idea to increase your coverage in order to limit your out-of-pocket costs should the total amount go above your limit.

Automotive Collision Coverage
 
This type of automotive insurance is most commonly covered on new cars, those that are financed and even older collector vehicles worth a great deal of money. In the case of an accident, collision insurance will cover the repairs needed on your car in order to get it back on the road. In the event the car is deemed as totaled by the insurance adjuster, collision coverage will pay for the value of your car. Older vehicles often don't require collision insurance, as the value of the automobile has depreciated to an extent where it simply doesn't make sense to have it repaired.

Comprehensive Auto Insurance
 
Just as the name infers, this insurance will cover incidents that are unrelated to a traditional car accident. Comprehensive insurance is a protection rider that will cover events such as theft of your vehicle, hitting a moose on the road, or weather damage caused by falling braches and rock slides. Though not a required form of insurance, it can be a great addition to any coverage policy for those 'just in case' incidents that would damage your car but are not normally covered under liability or collision events.

Uninsured / Underinsured Motorist Protection
 
Unfortunately, not all drivers comply with state guide lines for insurance coverage, and should one of these types of drivers cause an accident it may be that they are unable to cover the damages. Your protection against this happening is having uninsured or underinsured motorist insurance, where you will be able to cover the expenses of repairs or replacement. Having this policy may be distasteful to pay for, but if you determine a need, it is better than being left holding the check for your own repairs.