Car insurance is not something that people enjoy paying for. Like most things in the insurance world, it is available as a precautionary measure. Do you really need it though? Have you ever been in a wreck? Chances are you have. The short answer is yes, you do need car insurance. Now what you wanted to hear I am sure, but it is the truth. In the event of an accident you want to be covered. Accidents can happen at any moment and often times without warning. Therefore it is important to purchase coverage to protect yourself, but how do you know what you need. There are few different types of coverage that is available to everyday drivers. Here I list the different types of coverage so that you will have a better understanding. Only you can decide which is best for you and your vehicle.
The most common form of coverage is auto liability coverage. This type of coverage will pay for the damage is you are responsible for the accident and there has been harm to another individual or property. For this reason this type of coverage can be broken up into two categories: Bodily Injury and Property Damage Liability. Depending on where you live, there may be different laws in place that express exactly what you have to cover. Personal Injury will cover any medical expenses that a person will incur from your accident. This can include: rehab, lost earnings, replacement of services, and funeral expenses. It will also provide legal coverage in the event of a lawsuit against you. This however does not cover your medical expenses. Just like Bodily Injury, Property Damage covers you if your vehicle cause harm to other property.
Another type is comprehensive coverage. This type covers your vehicle and any others that you might be driving. This type of coverage protects your vehicle in the event that it is stole, or damaged. Check with your provider to get specifics. Most policies should cover damage by fire or flood. Other areas that may be covered are: wind, hail, vandalism, theft, or being hit by an animal. With comprehensive your insurance covers your cost minus you deductible. Just like medical insurance works, you pay the repair shop a set amount and then the insurance provider covers the rest. Chances are if you are financing a vehicle you have to have comprehensive coverage.
Another form of coverage is collision. This coverage covers exactly how it sounds. If your car hits or is hit by another vehicle then it is covered. Just like with comprehensive coverage, you can usually pick how much you want your deductible to be depending how much you can afford monthly.
With all of the different types only you can decide which type is best for you. Someone that lives in the city may not need coverage for the car being hit by an animal whereas someone who lives around a lot of animals may know that having that covered is a necessity. Check with your insurance carrier and make sure that you have at least the state mandated minimums and then build form there what you want and can afford.