It can be overwhelming. There are many things you need to consider when choosing the right coverage for your vehicle. To be legally on the road, drivers must have automobile insurance. However, it can be difficult to know what type of insurance you need so your car is adequately covered, while still being able to afford to drive it.
Apart from our homes, our cars are often our most valuable and essential material possessions. It’s crucial that all drivers learn the basics of auto coverage so they can drive with confidence and peace of mind.
Liability
Driving in every state requires at least some liability coverage. While the minimum coverage required varies from one state to the next, it is best to have more coverage in case you are in an accident.
These two sections provide liability coverage for bodily injury as well as property damage.
Bodily injury liability covers the medical expenses, and possibly the lost wages of those who are injured in an automobile accident. You may be held liable if your liability coverage does not cover the medical expenses of an injured person in an automobile accident.
Property damage is the cost to repair damage caused by an accident to another person’s property. This could be their automobile, motorcycle, bicycle, or house.
Comprehensive and Collision
You don’t need collision or comprehensive coverage if you own your car. However, depending on your driving record and the area you live in, it might be worthwhile to have some collision or comp coverage.
Collision covers damage to your vehicle if you are found responsible for an accident. Your deductible and collision coverage can have a significant impact on your premium. A higher deductible will result in a lower monthly payment and still provide adequate collision insurance.
Comprehensive insurance covers any damage to your vehicle that isn’t caused by an accident. Comprehensive insurance will cover you for acts of vandalism and attempted theft as well as damage from fire, acts by God, natural disasters, and acts of God.
Uninsured Motorist Insurance
Although a minimum amount of auto insurance must be purchased in order to keep your vehicle on the roads, it doesn’t mean everyone who drives a vehicle must have it.
In most states, uninsured motorist coverage must be purchased. It will pay for the damage to your vehicle and bodily injury if you are hit by a motorist without insurance.
Personal Injury Protection
Personal injury coverage pays for the costs of injuries and funerals for you, other passengers in a vehicle, or pedestrians involved in an accident. Personal injury protection coverage is not required in all states at the moment. This means that it might not be necessary for you to worry about depending on where you live.
These are the minimum requirements for driving your car legally in any state. Although it might seem overwhelming, a quick review of your vehicle, its environment, your driving record, and the driving habits you have should help you choose the right plan of coverage that will keep you on the road and not take too much out of your pocket.