Insurance Coverage You Will Need for Your New Car
Insurance Coverage
Buying a car is exciting, but it isn’t all fun and games. You have to make sure you have the right insurance coverage so that you’re protected in case of an accident or other mishap.
But what are the different types of car insurance, and which ones do you need? Let’s take a look at the basics.
Liability Insurance
Liability insurance covers damage you cause to other people or property while driving your car.
It also pays for legal costs if someone sues for damages related to an accident where you are found to be at fault.
Liability insurance typically comes in two parts: bodily injury liability and property damage liability.
Bodily injury pays for medical expenses due to injuries caused by an accident, while property damage pays for damages caused to another person’s vehicle or property.
Collision Insurance
Collision insurance covers repairs if your car is damaged in an accident—including one with another vehicle or object—or if your car rolls over.
This type of insurance is usually optional; if your car isn’t worth very much, you may decide that it’s not worth paying extra for collision coverage.
However, if your car is worth a lot of money or still has a loan outstanding on it, then collision coverage may be a good idea.
Comprehensive Coverage
Comprehensive coverage pays out if your car is damaged by something other than a collision—for example, vandalism, theft, fire, hail or flooding.
Comprehensive coverage also covers glass breakage (such as windshield replacement) and animal collisions (like hitting a deer).
Like collision coverage, comprehensive coverage may not always be necessary depending on the value of your vehicle and any loans/leases outstanding on it. Your auto insurance agency can help you get the comprehensive coverage you need.
When purchasing auto insurance coverage for your new vehicle, ensure you understand all the options available to you and how they protect you in different scenarios.
If your vehicle has a loan outstanding on it or is worth quite a bit of money, then comprehensive and collision coverages are probably smart investments even though they can add significantly to the cost of your premiums each month.
On the other hand, if these aren’t necessarily based on the value of your vehicle, then liability coverage is likely enough to keep you safe in case of an accident where you are at fault.
No matter what type of coverage you choose for yourself and/or your family members who drive frequently, make sure that everyone understands what kind of protection they have so they can drive safely!
Category: Car Insurance
