If you are getting ready to purchase your very first auto insurance policy, it's important to understand that there is more to it than purchasing an all-in-one policy. There are several types of coverage that you need to consider in order to ensure you are protected if you cause an accident on the road. Here is more info about 4 types of coverage.
Collision Coverage
The purpose of collision coverage is to cover damages caused to your vehicle in an accident, no matter who caused it. It can also cover damages that do not involve another driver, such as damaging your car by hitting a deep pothole. The cost of this coverage varies based on how much you are willing to spend for the deductible if you need to make a claim. The more money up front you are obligated to pay, the cheaper the coverage will be.
Property Damage Coverage
When you cause an accident, property damage coverage helps pay for any damage caused to other people's property. This includes the other vehicle that you hit as well as anything else you or the other vehicle collided with. For instance, if you hit a fence, the fence would be covered. Your state may have a minimum requirement for property damage coverage, but you can always add more coverage so that you do not have to pay out anything out of pocket aside from your deductible.
Bodily Damage Coverage
Bodily damage coverage protects you from having to pay the medical bills associated with anyone involved in a car accident. This can range from people in the other vehicle, people driving in your vehicle, and even bystanders that were injured as a result of the accident. Much like with the previously mentioned property damage coverage, your state may also require that you have a specific amount of bodily damage coverage in order to drive a vehicle. Increasing the policy limits will increase your premium but can save you thousands of dollars in the end. Having multiple people involved in a car accident can easily max out a small liability policy for bodily damage.
Comprehensive Coverage
This coverage is optional and catches all of the odd damage that can happen to your car. This includes vandalism, theft, or even a natural disaster like an earthquake or flooding. These may be situations where you suffer a total loss of the vehicle, and the coverage can help get you a new vehicle.
Share21 July 2018
I still remember the first time I had to chose an insurance policy; I was 17 years old and had just saved up enough money to afford my very first car. I was so excited to begin driving, but overwhelmed with all of the different auto insurance options. My father helped me chose a full-coverage policy that would cover the cost of my car if it were to become damaged in an accident. When I inevitably caused a small fender-bender as a new driver, my insurance company paid for my car repairs, so it sure was the best policy for me! Now that I am older and have learned a lot about home insurance and other types of insurance, I thought I would make a blog to help others who need insurance advice, like what my dad gave me. I hope I can help you make wise insurance decisions!