Car insurance policies vary in what they cover. The state mandates certain types of coverage that you must have in order to legally get behind the wheel. However, the mandatory minimum coverage may be far too low in certain situations, such as in a collision, in an accident with an uninsured driver, or if your car is damaged by a falling tree or fire. As a driver, it helps to understand the different types of car insurance available, as you may choose to pay a little more to get a lot more protection.
- Responsibility: This is the coverage that will pay for the other party when you are responsible for a collision. This coverage comes with a limit that the insurance company will pay if you are found responsible for a crash. You can increase the amount of liability coverage you have on your vehicle.
- Collision: This coverage replaces a damaged vehicle after an accident (regardless of who caused the collision) and is required for drivers with financed or leased vehicles.
- Extensive: This type of coverage pays for damage to a vehicle caused by incidents other than collisions, such as a tree falling on a vehicle, vandalism, theft, fire, and so on.
- Uninsured/Underinsured: A shocking number of drivers operate vehicles without current car insurance. If you are in the wrong place at the wrong time and in a collision with such a driver, you will want to ensure that you have this coverage in place. It pays out for vehicle damage and medical care. An underinsured driver may only have the minimum required in the state, which does not cover your actual medical bills ̵1; this insurance can save the day.
- Rent compensation: Your car insurance can pay for a rental car that you can use when your vehicle is damaged in an accident. Knowing that you will have transportation in this situation is important.
Car insurance – what’s right for you?
You can be a very safe driver. But even the most careful driver can encounter problems when they share the road with a driver who is drunk, on drugs, speeding, distracted or driving recklessly. As much as we hope to avoid car accidents in a lifetime, they can happen. A collision can range from minor fender-benders to a serious crash. Additionally, incidents involving theft, vandalism or weather-related damage are quite common.
Protect your vehicle and your family.
Why not make sure your investment in your vehicle is protected? For help in choosing the best car insurance, consult an insurance agent. You may be surprised to find that adding extra coverage, such as uninsured/underinsured motorist coverage or comprehensive insurance, will increase premiums but add a layer of protection for when the unexpected happens. If you have a teenage driver, don’t skimp on car insurance. Young drivers, even well-educated ones, lack the extensive experience that results in being a good driver. Statistically, they are more likely to be involved in a collision.
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