While there are a lot of different options when it comes to choosing the auto insurance coverage types you want to have, there are three that are absolutely vital for most drivers. If you want the best protection with your auto insurance, you should make sure you have these three types.
Liability Coverage
One of the most basic forms of auto insurance coverage you can get is liability coverage, but it is absolutely vital. In fact, some people purchase policies that only offer liability coverage alone. Liability coverage is designed to protect you financially, and it works for this by paying out claims to other people if you cause an accident that leaves them injured or their cars damaged. You should not drive without liability coverage, as someone could sue you if you did not have it when you caused an accident to occur. This could leave you financially devastated, which is why it is always a good idea to purchase liability coverage when you own a car or drive a car.
Collision Coverage
In some cases, you might not need collision coverage, but you can benefit by having it. Collision is a form of auto insurance that protects your own vehicle and damages from collisions you are responsible for. If you wreck your car because you were distracted while driving, you can file a claim for damages, and your insurance company would pay for the damages you experienced. It really does not matter why you caused the accident or how it happened. Collision covers your own mistakes and your own car. If you have a loan on the vehicle you drive, you will probably be required by your lender to have this coverage.
Comprehensive Coverage
The third vital type of coverage to have is called comprehensive, and this type of coverage fills in the gaps where collision coverage lacks. It covers things like hail damage, deer accidents, and vandalism to your car. These are types of perils that are not covered with collision or liability coverage. If you want to have protection over these types of events, you would need to add comprehensive coverage to your policy.
You may also want to add additional types of coverage to your plan too, as there are many other options. To find out the best types for your needs and situation or to ask questions you have, talk to an insurance agent today. Companies like New Hope Insurance can help.
Share12 February 2020
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!