What are the auto insurance plans I can choose from?


Auto insurance shopping becomes easier if one understands the different types of coverage and identifies what is needed. A little knowledge in auto insurance can go a long way in saving money by paying lower premiums. There are many kinds of coverage to protect both automobile and driver, so careful selection of at least two of them can protect well on roads. Third party liability insurance is a mandatory coverage that every auto owner should have in USA, so there is no choice when it comes to buying that.

Comprehensive and collision

Comprehensive insurance protects automobiles from natural disasters like tornadoes, hurricanes, floods, extreme weather conditions, earthquakes and so on. Comprehensive coverage also protects the cars from damages resulting from vandalism, riots and fire, and even insures the cars for thefts. People residing in sensitive areas prone to any of the above conditions must consider buying a comprehensive coverage. Collision insurance, like the name says, protects the vehicles from damages resulting from a collision of any kind. This may be with other vehicles, gates, compounds, lampposts and any other thing. Buying collision insurance puts the driver’s mind at ease, because it provides protection irrespective of the fault of the driver of the automobile.

Uninsured motorist coverage

If not collision insurance, at least buying uninsured motorists coverage is recommended, because it provides protection regardless of the third party liability insurance of the other driver. When in collision, if the other party involved does not have a liability insurance, and the policy holder does not have a collision insurance, the damages to the automobile is unpaid for. To protect from such events, having uninsured motorists insurance coverage is essential.

Personal injury protection plan

This plan is most important irrespective of any other coverage, since it protects the driver and people inside the cars against physical injuries. Personal injury plan helps cover medical bills of treatment for personal injury after accident. It is mandatory because every insurance policy takes care of automobile damage, but not medical expenses.

Medical liability

This, like liability insurance protects the other drivers on road, in case of a collision. It pays for the medical bills for treatment of the other driver’s physical injuries resulting from a collision. If this insurance is not a part of the coverage, a lot of money can go out of pocket, if the policy holder is at fault in a collision incidence, since the driver at fault should pay for the medical expenses.