There are various types of insurance coverage one can go for, based on their need as well as the premium they can afford. Most states have made it mandatory for every car owner to have a liability insurance coverage, which will provide for the damage repair costs of the other party if you have been involved in an accident and the responsibility of the accident was yours.
Collision insurance and comprehensive insurance are two other types of insurance coverage which are usually taken by most car owners. Depending on the cost, auto insurance customers can choose for one or both of these, as it is hard to predict which one would really be handier. The collision coverage will provide for the damage repair costs in case of collision of your vehicle with another vehicle, wall, tress or any other object. Basically, you can claim for the collision coverage when your car is hit while travelling.
The comprehensive coverage pretty much covers all scenarios which are beyond your control. You can claim for comprehensive coverage when your car has been destroyed by floods, fire, earthquake, cyclone or any other natural catastrophe. Similarly, if your car has been destroyed by an act of vandalism, you can claim for the comprehensive coverage.
Another insurance coverage that is very useful is the Personal Injury Protection. This insurance covers for all the medical expenses incurred by the car driver or anyone travelling in the car, due to an accident. This is very similar to travel insurance, where one can claim for coverage for expenses to treat injuries sustained in an accident. Auto insurance coverage can also provide you the cost of the car or for a replacement vehicle, if your own vehicle has sustained irreparable damages in an accident. This coverage is very useful especially when the auto insurance loan on the car hasn’t been paid yet. In most cases, the cost of a replacement car is a better option compared to providing you with the cost of your own car at the time of the accident, as it may not suffice to get a new vehicle.
Uninsured motorist property damage insurance coverage is another insurance policy which takes care of all the costs incurred by you for medical expenses and automobile repairs, in an accident which was the counterparty’s responsibility and the counterparty doesn’t have a third party liability insurance to cover for the costs.
