Auto insurance is an important part of any driver’s financial plan. (Not to mention it’s required by law.) There are quite a few types of coverage available. It can often be confusing to figure out what exactly you’re buying when you get insurance. But with all the types of auto insurance, which policy will give you the best coverage for your needs?
Comprehensive Coverage
Comprehensive coverage covers damage caused by accidents other than collision (e.g., fire, vandalism). Collision coverage pays for damages caused by collisions with other vehicles. Both coverages are required by law in every state.
Collision Auto Insurance
In addition to these two main types of auto insurance coverage, there are also optional coverages available. These include uninsured/underinsured motorist coverage, personal injury protection (PIP), medical payments, and rental reimbursement. Uninsured/underinsured motorist insurance protects against injuries caused by drivers who do not carry adequate liability insurance. PIP provides compensation for bodily injury and property damage caused by an accident involving another vehicle. Medical payments pay for medical expenses incurred as a result of an accident. Rental reimbursement reimburses the renter for any lost wages due to an accident.
Liability
If you own a car, you should consider purchasing both collision and liability coverage. This will protect you in case of an accident with other vehicles or pedestrians. However, if you only purchase one type of auto insurance coverage, you may end up paying more than necessary.
Uninsured/Underinsured Motorist (UM)
Underinsured motorist coverage pays for injuries caused by drivers who do not carry enough insurance to cover the full cost of medical treatment. It also covers damages to your vehicle when hit by an uninsured driver.
Auto Insurance Medical Payments
In addition to these two options, there are other types of coverage available. These include collision damage waiver (CDW), personal injury protection (PIP) and comprehensive coverage.
Contact us today to find out how we can help you get the best policy for your situation.