Are you shopping around for auto insurance but have no idea where to start? Do not worry because you are not alone in this.
It is difficult for typical consumers to choose the right auto insurance because they have no idea of what kind of coverage they should have.
The kind of insurance coverage that the law requires may not be enough for you to feel protected in case something happens to you on the road.
The best solution in this situation is to find out exactly what kind of insurance coverage that you need to have as required by your state government.
Not all states have the same requirements, so you had better check what your state laws find essential.
In addition, you also need to know what additional coverage you have to get in order to satisfy lender requirements if you are still making monthly installments for your car.
To help you along, here are the most common types of car insurance coverage that you need to have over and above what your state requires.
Having these will definitely get you protected in case something happens to you on the road.
1.
Bodily injury liability.
This coverage is your protection in case you injure a third party while driving your car.
If you have this, your private assets will be left alone in case a lawsuit is filed against you for the injury.
2.
Collision.
Collision coverage will protect your vehicle from any damage it sustains in case of an accident.
It does not matter if the damage is your fault or not.
But if it is, a deductible will apply.
You need to have this coverage if you are not yet fully paid up on your car.
3.
Comprehensive coverage.
In case your vehicle sustains damage for reasons other than a collision, such as fire, vandalism, natural disasters or theft, a comprehensive coverage will answer for these damages.
Your lender will require this coverage if you are still paying up for your car, but once your car mortgage is settled, you can choose to discontinue it.
4.
Personal injury protection.
Also known as PIP, this coverage will settle medical payments as well as wages lost in the event that you or your passengers get injured while you are driving your vehicle.
5.
Uninsured or underinsured motorist coverage.
This coverage is your shield in case you get hit by someone who does not have sufficient car insurance or in case you get involved in a hit-and-run situation.
This may seem a lot to have at this point, but having these auto insurance coverage types will save you and your assets someday.
If you want to save up on premiums, you can choose to have bigger deductibles.
Just make sure that you can afford those deductibles if anything happens to you and your car on the road.
It is difficult for typical consumers to choose the right auto insurance because they have no idea of what kind of coverage they should have.
The kind of insurance coverage that the law requires may not be enough for you to feel protected in case something happens to you on the road.
The best solution in this situation is to find out exactly what kind of insurance coverage that you need to have as required by your state government.
Not all states have the same requirements, so you had better check what your state laws find essential.
In addition, you also need to know what additional coverage you have to get in order to satisfy lender requirements if you are still making monthly installments for your car.
To help you along, here are the most common types of car insurance coverage that you need to have over and above what your state requires.
Having these will definitely get you protected in case something happens to you on the road.
1.
Bodily injury liability.
This coverage is your protection in case you injure a third party while driving your car.
If you have this, your private assets will be left alone in case a lawsuit is filed against you for the injury.
2.
Collision.
Collision coverage will protect your vehicle from any damage it sustains in case of an accident.
It does not matter if the damage is your fault or not.
But if it is, a deductible will apply.
You need to have this coverage if you are not yet fully paid up on your car.
3.
Comprehensive coverage.
In case your vehicle sustains damage for reasons other than a collision, such as fire, vandalism, natural disasters or theft, a comprehensive coverage will answer for these damages.
Your lender will require this coverage if you are still paying up for your car, but once your car mortgage is settled, you can choose to discontinue it.
4.
Personal injury protection.
Also known as PIP, this coverage will settle medical payments as well as wages lost in the event that you or your passengers get injured while you are driving your vehicle.
5.
Uninsured or underinsured motorist coverage.
This coverage is your shield in case you get hit by someone who does not have sufficient car insurance or in case you get involved in a hit-and-run situation.
This may seem a lot to have at this point, but having these auto insurance coverage types will save you and your assets someday.
If you want to save up on premiums, you can choose to have bigger deductibles.
Just make sure that you can afford those deductibles if anything happens to you and your car on the road.
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