What Are the Main Types of Auto Insurance Coverage?
Auto insurance is mandatory in most states. Thus, it is important to know the different types of auto insurance before purchase. Good auto insurance provides financial protection in case of unexpected accidents. You will have to know your options to know which type of insurance works best for you. Here we discuss the main types of auto insurance and the details involved in each.
1. Liability Insurance
Liability insurance covers the cost of injuries and property damage from a covered accident that is determined to be the result of your fault/negligence. Most of the U.S states have a minimum requirement for the amount of liability coverage for a person to drive the car but it is best to have liability insurance that exceeds this minimum limit. This protects you from paying a large amount of money because of the exceeded policy limit.
Liability insurance usually covers:
• The repair or replacement cost of the damaged property
• Medical bills due to hospitalization or treatment of the third party
2. Collision Coverage
Collision coverage covers the cost of repairs to your car after it is involved in a covered accident. If the repair costs exceed the value of your car, then collision coverage will pay the current market value of the car.
The amount of collision coverage depends on the value and age of the vehicle. Collision coverage is usually recommended for a brand-new car or an expensive one while older cars can use low collision cover.
3. Personal Injury Coverage
Personal injury protection covers the medical expenses of the driver along with the passengers involved in the accident. The insurance company will pay for the expenses regardless of who is at fault.
Personal injury protection insurance will also cover the expenses from the loss of income due to the covered accident. Depending on the policy limit, personal insurance coverage can cover up to 80% of the costs stemming from the accident.
4. Uninsured Motorist Protection
Uninsured motorist protection comes in handy when you are involved in an accident that is caused by an uninsured vehicle. This will cover the costs for the repair or replacement of your vehicle especially when a third party’s insurance coverage is not sufficient to cover it.
With uninsured motorist protection, it is possible to overcome the cost of the repairs and medical bills easily. It is usually inexpensive to add underinsured insurance to the existing policy but make sure to check the amount of protection that it offers.
5. Comprehensive Coverage
Comprehensive coverage offers protection from the costs that occur due to incidents other than collisions. These incidents might include vandalism, accidents involving animals, weather damage or theft.
The amount of coverage involved with comprehensive coverage depends on your need. Installing anti-theft devices or tracking devices can reduce the amount of comprehensive coverage needed by your vehicle.
We at Allied Brokers have long-standing partnerships of 60 years and more with the most reputable insurers nationwide. To know more about the myriad of options available while purchasing auto insurance, visit us at https://alliedbrokers.com/auto-insurance-types-california.html. Here’s an insurance comparison website that you can use to compare and choose.
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