Car insurance is one of the most important investments you can make. If you’re in an accident, It can help protect you from soaring costs of repairing another driver’s car. If you’re hit by an uninsured driver, it can help you get your vehicle repaired or even replace your car. It can also help you get the medical care that you need to get healthy again. But choosing the right car insurance can be a challenge. That’s why we’ve compiled a list of a few things you should know to find the right coverage for you.
There Are 6 Types of Car Insurance Coverage
If you’ve ever shopped for car insurance in the past, you know that all policies are not created equal. But what many drivers don’t realize is why each policy is different. It goes beyond just different priced premiums or deductibles; different policies also offer different kinds of coverage.
There are six main types of auto insurance coverage that might be included in a policy.
- Liability Coverage: Liability coverage is the most common type of coverage, and is mandatory for drivers in most states in the U.S. Usually, states set a minimum amount of liability insurance that must be purchased. Your liability coverage will cover the costs of care for another individual’s injuries, as well as the cost for repairs to their property if you cause an accident.
- Uninsured Motorist Coverage: This coverage protects you in case you are hurt and/or your vehicle is damaged by a driver who does not have car insurance. Some states do require this type of coverage for all drivers.
- Comprehensive Coverage: This type of coverage pays for damage caused by things other than car accidents, like theft, weather or vandalism.
- Medical Payments Coverage: Medical payments coverage will pay for your care, as well as the care for any passengers in your car, after an accident. This includes covering the cost of X-rays, hospital stays and surgery.
- Collision Coverage: While medical payments coverage pays for your medical care, collision coverage pays for repairs on your vehicle. This includes repairs after an accident with another car, or a collision with fences, trees, etc.
- Personal Injury Protection: This type of coverage takes medical payments coverage one step further. Instead of just paying for your medical care, this coverage could cover things like lost wages or the cost of child care after you are injured in an accident.
Some States Require a Minimum Amount of Coverage
As we mentioned above, many states require a minimum amount of coverage. Most states require liability coverage, but some require uninsured driver coverage as well. Check your state’s requirements while you’re shopping for coverage to make sure that you are meeting at least the minimum requirement.
Certain Occupations Might Require Additional Insurance Coverage
Today, having a car opens up a variety of opportunities to earn some extra income or even make your living full-time behind the wheel. Whether you do rideshare through a company like Uber or Lyft, deliver food or any other occupation using your personal vehicle, don’t forget to make sure that your car insurance has your back. If you plan to use your car for rideshare or other work, check to make sure that you have enough coverage. The best way to do this is to call your insurance provider and ask them whether you need to add coverage to protect yourself while you’re at work.
Check for Discounts
When it comes to shopping for car insurance, never be afraid to ask for discounts. Many insurance providers offer a variety of discounts that can help make your premiums more affordable. For instance, USAA offers a wide range of discounts, such as those for safe drivers, good students, new vehicles, multi-vehicle policies and more.
Choosing the Right Auto Insurance for You
Shopping around for car insurance can be stressful. But by understanding the different types of coverage, checking your state’s requirements, making sure you don’t need additional coverage and asking for discounts, you can find the right policy for you.
It’s interesting to know that there is a car insurance coverage that covers damages not caused by accidents or theft. I live near an area where deer are sometimes reported to be causing a nuisance to the local populace. I think a comprehensive coverage will be useful in case a deer scratches or damages my car’s windows or something similar to that.