COLLISION AND COMPREHENSIVE COVERAGE
Collision and comprehensive coverage will pay for damage to your automobile. When signing up for an auto insurance plan you can purchase either of these types of coverage or each of these types of coverage. Some auto loans require automobile owners to have both types of coverage.
The collision coverage provides insurance for any damage caused during an accident. Comprehensive coverage provides insurance coverage for physical damage that is incurred in events such as a fire, theft, flood or even vandalism.
Collision and comprehensive insurance coverage will usually include a deductible. Your deductible can range from $100 to $1,000. The deductible is the amount of money you are responsible for when your car is damaged. Any damage, in excess of the deductible, will be covered by the insurance company. Usually, the higher that the deductible is the lower the customer’s premium will be.
MEDICAL PAYMENTS COVERAGE
Medical payments coverage will cover the medical expenses for yourself and the passengers in your car that were injured in an automobile accident. Usually, a dollar limit is specified and if a medical expense exceeds that, the insured is responsible for the rest of the cost. This coverage is provided no matter who is at fault in the accident. When you and your passengers are insured, this type of coverage may not be necessary.
Liability coverage will cover the injuries that you cause to another person or the damage that you cause to another individual’s property when you are in an automobile accident that is your fault.
PERSONAL INJURY PROTECTION
Personal injury protection, or no-fault coverage, is required in some states. This is the coverage that will pay for things like medical or rehabilitative expenses, replacement services or the cost of a funeral. If someone is injured in an accident and cannot work, this coverage will pay for the loss of income as well.t
UNINSURED/UNDERINSURED MOTORIST COVERAGE
This specific coverage will cover injury that comes from a person that has no insurance coverage or does not have enough liability coverage to cover your injuries. This is also the coverage that is used if a hit-and-run driver damages your car or injures you.
There is even more special coverage such as towing, rental reimbursement or even roadside assistance that is available to those looking for an insurance policy. Although none of these types of coverage are required, customers should consider if any of the coverage would be beneficial for them.
HOW MUCH DO I NEED?
When choosing auto insurance, customers should understand that the amount of auto insurance coverage that they need will depend on many different factors. When considering what type of coverage you will need, you should consider the assets that you need to protect, the value of your vehicle, the amount of money you could pay out-of-pocket and your tolerance for risk.xt