It is a fact that majority of the states across the US require their drivers to have a car insurance. Every year, the number of drivers in America is increasing and therefore, there is a great population of people who are yet to be informed about how car insurance works and how it is relevant for drivers out there.
Types of car insurance coverage
Auto insurance is actually a package deal of different types of coverages. There are many risks or perils on the road. The driver could be in danger of getting hit by another motorist. They could be affected by vandalism or theft. They could be dangers to their own selves. Here are the important insurance coverage offered by companies:
- Liability- when someone gets hurt due to your driving or carelessness, this covers the property damage and bodily injuries. This covers lost wages, hospitalization, as well as suffering and pain. This can also pay the cost for lawyers and court costs. Each state will have a different requirement as to how much coverage you can get but it is ideal to get more than what’s expected.
- Comprehensive- this is the coverage that pays the cost of damage due to non-vehicular reasons. Maybe the car was stolen, vandalized, flooded, wind damaged, burned or such.
- Collision- when a car collides to another car or a solid object, this is the coverage that pays for the cost of repairs.
- Medical- if the bodily injuries are caused by car accidents, this one pays the cost of medical service, no matter who’s at fault.
- Personal Injury Protection- This is not a requirement for most but is applied on some states. This pays the medical treatment costs of the insured driver even if they are the cause of the accident or not.
- Reimbursements for rental cars- if you had to get a rental car when your car is getting fixed due to a car accident, the insurance will cover the cost of your rental.
- Uninsured motorists- if the driver who caused the accident does not have liability insurance, this is the coverage that can pay for the cost of the repairs. A variation would be the under-insured motorist coverage wherein the motorist who caused the accident does not have enough liability insurance to cover the extent of the damage that the car incurred.
It is common that insurance companies will have several policy options combining different coverages depending on consumer’s apparent needs and risks. It is necessary to identify your specific insurance needs in order to match the coverage and make your car insurance worth the cost.
