While auto insurance might seem complicated and confusing, it’s essential to understand the various types of car insurance coverages in order to make informed decisions. It’s also important to understand car insurance coverages can vary by the insurance carrier because you want to ensure that if and when it comes time to file a claim, your policy has you covered. That’s why working with a licensed insurance advisor is highly recommended. They can help explain what is and isn’t covered by your car insurance policy. Here is a comprehensive guide to the different types of car insurance coverages available and how they can help protect you and your vehicle.
Liability Coverage
Liability coverage is one of the most basic forms of car insurance coverage, and it also happens to be required by law in most US states. It pays for bodily injury liability resulting from an accident involving your vehicle, as well as property damage liability. Bodily injury liability covers medical costs for anyone injured in an accident that was your fault, while property damage liability covers structural or material damage caused by your vehicle during the same incident.
Collision Coverage
Collision coverage is another type of auto insurance coverage that helps pay for damages to your own vehicle if it collides with another object, such as a tree or a building. It also applies when two cars collide with each other. Collision coverage will typically cover both repairs and/or replacement of your vehicle up to its current market value. This coverage may require you to meet certain deductibles before claims are paid out.
Comprehensive Coverage
Comprehensive coverage helps pay for damages caused by events that are not related to collisions, such as theft, flooding, fire, or hail damage. Comprehensive coverage will typically cover repairs and/or replacement costs up to the market value of your car at the time of loss or damage. It may also require you to meet certain deductibles before claims are paid out.
Uninsured/Underinsured Motorist Coverage
Uninsured motorist (UM) and Underinsured motorist (UIM) coverage helps protect you from drivers who do not have any auto insurance at all or do not have enough auto insurance to fully cover all your losses after an accident. Both UM and UIM can provide additional protection above what’s provided by liability coverage alone.
Understanding the different types of car insurance coverages is essential if you want to help ensure that you have adequate protection when it comes time to make a claim. When comparing car insurance quotes with one of our advisors, we take the time to help our clients understand the coverages offered by each carrier so they can find a policy that best suits their needs and budget!
Comments