Five types of coverage that you must consider


When it comes to auto insurance, nothing really is set in stone. You have to take a call on what you need and what you can do without. Once again it is up to what you can afford and the offer that you are getting from the insurance provider. Shopping online and taking quotes from multiple insurance providers can actually help you save some money by bagging the best possible deals. However, you will have to cast a look at the different types of auto insurance coverage available to you and inspect if you might need them.

The first of these is the comprehensive coverage which becomes very handy when your car is damaged by forces which are beyond your control, other than a fellow motorist. For example, if your car has been damaged due to a fire, a flood or a hurricane or an act of vandalism then you can claim for damage repair costs. It purely depends on the area you live in and the risks which you face as a car owner. The comprehensive insurance also provides coverage against theft, either of the entire car or parts within the car like the music system.

Along with comprehensive insurance, another important type of coverage provided by insurance providers is the collision insurance. As the term suggests, this will provide coverage when your car has been damaged due to a collision either with another vehicle or with an immovable object like a wall or a tree. This too is conditional and is not mandated by law, unlike the third party liability insurance. However, insurance providers offer the entire package, combining comprehensive, collision and third party insurance as total insurance, which is a good coverage to have if you can afford it. If you have a good driving record and you don’t commute a lot, then you might actually get away with much smaller premiums than those with risky profiles and past claims.

Auto insurance coverage providers offer several other types of insurance tailored for specific situations. You can purchase them to avoid unforeseen expenses and losses. For example, there are situations where one purchases a car on a loan. Interestingly, while it takes a while to repay the auto loan, the depreciation of the car itself is quite quick with new models coming quite often. Similarly, if your car was totaled you would be repaying the loan, without actually owning a car yourself. The totaled car insurance makes sure you get the compensation equal to the market value of the car at the time of its being totaled.

The gap insurance similarly takes care of the differential between loan amount and the market value at any given time, especially if you have purchased a very expensive car. There is insurance for accidents caused by uninsured motorists whose third party liability insurance is either missing or too small to cover your damages. If you travel a lot in your car and cannot do without it at all, you might consider requesting for add-ons like emergency roadside assistance, towing insurance and rental car insurance.