What Car Insurance Plan is Best for Me?


Getting a car insurance policy is a serious matter. It is not just about you complying with what the state requires of you. You must be aware what insurance policy is best for you. In order to do this, you must know your capabilities as a driver and your car’s capacity, and you must be aware of the required insurance policy your state commands. Next, you must have at least an idea what insurance policy each auto insurance company offers. You should know what each type of coverage policy really covers before choosing which one to buy.

Each type of insurance policy covers for different types of would-be accidents or loss that could happen to you while on the road.

The most common coverage policy is the liability coverage. Most states require this as the minimum policy each car owner should have. The liability insurance policy covers for any injuries or damages a policyholder inflicts on someone or someone else’s property. This means that this insurance policy covers for any damage and injury in an accident caused by the policyholder. There are 3 types of insurance policies under the liability coverage.

  • Property damage liability pays for the repairs or any replacements on the damaged property of another party that is caused by you.
  • Uninsured or Underinsured motorist covers for the damage and injuries on an accident wherein another driver is involved and that other driver doesn’t have liability coverage or his insurance is not enough to settle for the damages and injuries on your car.
  • Bodily injury liability is a liability coverage which covers for any injuries or death of another person from a car accident caused by you.

The next type of coverage policy is the collision coverage. This insurance policy covers for any damage your car gets after an automobile accident. In this coverage, the damage must be due to your car colliding with another car or hitting another object like a traffic light post, a wall or a tree.

When the damage on your car is due to other reasons besides it hitting another object or another car, the insurance policy that covers for the repairs of your car is called the comprehensive coverage. The damage on your car could be due to hail, fire, flood, theft or vandalism. When your car hits an animal on the road, comprehensive insurance policy is also the one that covers it.

When after an accident you get an injury, medical payments and personal injury protection covers for your medical bills whosever fault the accident was.