Making Sense of Car Insurance

What Kind of Car Insurance Do You Need?

insuranceRegardless of the vehicle you drive, you need car insurance. The level and type of insurance purchased should be designed to meet your individual needs. How much you pay for insurance will be determined by many factors including the age and type of your vehicle, your driving record, your age and place of residence, and how many miles you drive annually.


Liability Insurance

This type of insurance will cover damages and injuries of another person in the event you are responsible for an accident. The accident is the result of your actions, and you are responsible. This coverage will pay for costs associated with repairing property damage and any medical bills associated with injuries caused by the accident. The majority of states require drivers to have a predetermined amount of liability insurance. Insurance experts agree it is best for an individual to have more than their state’s required minimum amount of liability insurance. The reason is simple. If a person doesn’t have enough insurance to cover all the damages and medical bills after an accident, they may have to make up the difference out-of-pocket.


Uninsured/Underinsured Coverage

Most states require their drivers to have car insurance before operating a vehicle. Unfortunately, not all people follow these laws and may drive vehicles with low coverage or no car insurance at all. The majority of states do require drivers to have liability insurance. In many cases, the minimum amounts for liability insurance will not pay for all of the damage or medical bills that result from an accident. This means if someone is found legally responsible for an accident, the victims may not get any payment or the payments they do receive may not be enough to cover all of the damage and medical bills associated with the accident. When this happens, a victim who is either uninsured or underinsured will have their accident expenses covered.


Collision Coverage

This coverage is designed to pay expenses associated with repairing your vehicle after a collision. In a serious accident, the vehicle can be totaled. This means the costs associated with repairing the vehicle will be more than the estimated value of it. In this situation, collision coverage will pay the policyholder the value of the vehicle that was totaled. If a person drives an older car, it may not be worth having collision coverage on their vehicle. This will depend on the value of the vehicle. Should a person have an expensive vehicle that is fairly new, collision insurance coverage may be important. It is designed to repair a vehicle into the same condition it was prior to any damage from the accident. If a vehicle is purchased by a loan from a financial institution, collision coverage may be required as part of the loan agreement.


Comprehensive Coverage

Cars can be damaged by more than just accidents. A car may get significantly dented during a hailstorm, the driver may hit a deer, or the vehicle could get stolen. Collision, as well as liability coverage, were designed to cover a vehicle in case of an accident, but don’t account for other situations. In some states, this type of insurance is considered costly. When a vehicle has certain anti-theft devices as well as tracking devices and more, this could lower the amount of money required to have comprehensive coverage.


Personal Injury Protection Coverage (PIP)

The medical bills and damage costs associated with any accident can become excessive. When a person has PIP coverage, the medical bills of the driver and passengers will be paid no matter who is determined to be responsible for causing the accident. PIP coverage is not offered in all states.


Getting Car Insurance

Once a person has determined the type of insurance they want, as well as the level of protection, it is time to begin shopping. Go online or speak with a licensed insurance representative to obtain free insurance quotes.