What Kinds of Auto Insurance Do You Need?
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by: laurawilder
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Is auto insurance a brave new world to you? Are you bewildered by the array of options to choose from? Its a lot easier than it looks. Just add a few more terms to your vocabulary:
Bodily Injury Liability and Property Damage Liability insurance are the most important kinds of auto insurance to have. If you are responsible for a car crash, Property Damage Liability covers the property damage you caused, and Bodily Injury Liability covers injuries you caused to the other people involved. In this era of skyrocketing medical bills, it is important to have sufficient Bodily Injury Liability. And when cars frequently cost $25,000 or more and roadside property can be even more expensive, having enough Property Damage Liability insurance is absolutely essential to protecting your personal financial assets. States often set a minimum amount, but go above it if you can. You may be surprised at how little it costs.
Whether or not you are at fault, collision coverage will pay for damage to your own car. The larger the deductible you choose, the less your collision coverage costs will be.
Collisions are not the only way a car can be damaged. Comprehensive auto insurance insures your car against non collision damage. Storm damage, vandalism, theft, and damage from hitting animals are among the types of damage covered by comprehensive insurance. Window glass, a frequently broken item that can be expensive to replace, is sometimes covered by comprehensive insurance, but not always. Read your policy thoroughly, and consider getting extra insurance to cover glass if your comprehensive insurance does not cover it.
These are the most common and basic kinds of auto insurance. There are also types you are less likely to have, such as Uninsured Motorist Property Damage insurance. This type of insurance is uncommon in states where all drivers are required to have auto insurance, such as Massachusetts, and more common in states where auto insurance is not mandatory. Before you buy Uninsured Motorist Property Damage insurance, determine whether a noteworthy percent of drivers in your region are uninsured. You may find that buying this kind of insurance is pointless, or it may be one of the best investments you can make.
When in doubt, remember that your level of auto insurance coverage is not carved in stone. If you sign a contract and then decide you need more or less coverage, you can always return to your insurance agent and have your policy changed. It is easier to add coverage than to subtract it, but most companies will also allow you to remove coverage as long as you do not go below the legal minimums. So do not assume you are fixed into a certain level of coverage after you have received your policy; think about how much you really need, and adjust your auto insurance to suit your best interests if new information makes you change your mind. Auto insurance may be expensive, but it is priceless when you realize how important it is to your and the other drivers futures.
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See more on the topic of car insurance, link to insurancetree.com/auto-insurance.
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