Automobile insurance is an essential part of any responsible car owner’s life, as state law requires any driver to have at least a minimum amount of coverage. If you are not familiar with auto insurance, it is defined as “a contract with the insurance company by which you pay a premium in exchange for the company paying for accident damages to your car.” There are many different types of auto insurance. The two most common types are comprehensive coverage and liability coverage.
Comprehensive auto insurance pays for any damage to your car, including repair costs or replacement costs, regardless of who is at-fault. This protection extends not only to damages from accidents, but also from theft, weather damage, or other unusual circumstances. If you have an auto loan on your vehicle, this type of insurance is what is required by most lenders.
Liability coverage pays for property damage and medical bills to the other party in an automobile accident if you are determined to be at fault. It does not cover any of your damages or your medical costs, however.
Collision insurance coverage protects you in case of an accident with another car. It will pay for your repairs and for your medical expenses even if you are found to be at-fault for the accident. In addition, you can get an additional personal injury policy that will cover medical costs for any passengers that may have been in the car with you at the time of the accident.
One type of insurance that you want to be sure you have in this day and age is uninsured/underinsured motorist protection. Not everyone has auto insurance and if you are in an accident that is caused by them, you may not be able to get your medical costs taken care of or be able to fix your car. This insurance protects you from having to pay those bills yourself.
The right auto insurance can ensure that you have peace of mind, no matter what your needs are. Contact your insurance agent today to learn more about these different types of insurance.