Types of auto insurance coverage to safeguard your vehicle


The roads today are not as safe as we would want them to be. With traffic bursting at its seams, auto accidents are becoming a common occurrence all over the world. Though you may be a very careful driver, not all of them behind the wheel may have the same attitude. Auto insurance coverage provides a safety blanket and assures you that there is financial help on hand during time of crisis. While the need for auto insurance cannot be disputed, you can definitely choose the amount of coverage you would want for the vehicle. People with vehicles less than three or four years old prefer comprehensive coverage, while those with very old vehicles may be content with third party coverage. Considering the varying needs of people, auto insurance providers offer a range of options for prospective customers to choose from.

Liability insurance is one of the most common types of auto insurance. This insurance covers the minimum requirements specified by the state. Since the auto insurance laws vary from one region to the other, the liability insurance terms also vary considerably. This insurance coverage covers the cost of property damage and treatment costs. This coverage offers the bare minimum coverage, which means that you will have to shell out money from your pocket when the cost of treatment and repairs exceeds the policy amount. If you want to eliminate this problem, you can consider increasing the value of the liability coverage.

Collision insurance is another type of auto insurance offered by leading providers in the country. When you opt for this type of coverage, you can be assured of receiving financial assistance to get your car repaired in case it is damaged in an accident. If the car is totalled, then you will be receiving a certain amount of money from the provider. The amount disbursed will not be the same as the cost of the new car you intend to purchase, but will be the market value of your old car before it was totalled in the accident. While this type of coverage is a boon to those with relatively new cars, it is not recommended for those who have cars with a low market value.

The comprehensive coverage is also a type of auto insurance offered by leading auto insurance providers. This coverage includes the benefits of the collision and liability coverage, which means you will not only be getting money towards the repair of your car, but also towards the medical cost and the repairs for the other car involved in the accident.