Types of Car Insurance

 

There are many types of insurance policies and coverage, and it can be overwhelming to think about the coverage that you want to purchase that is both needed and affordable.  Here is a brief overview of the most common types of car insurance coverage.

 Bodily Injury Liability:  This refers to other people’s bodily injuries or death that you are responsible for.  This also allows for a legal defense if another party involved in the accident files a lawsuit against you.  The claims for bodily injury may be medical bills, pain and suffering, or for loss of income.  If there is a serious accident, you will probably want to carry enough insurance that you can cover a judgment against in the event of a lawsuit.  While bodily injury liability does cover injury to people, it does not cover injury to your vehicle.  This type of coverage also does not cover you or other people that are on your policy, and the coverage is limited to the conditions and terms that are outlined in your personal policy.

Comprehensive:  Comprehensive insurance covers your vehicle and at times other vehicles you are driving for any losses that are the result of incidents other than collision.  For example, if your car is damaged by a flood, fire, animals, or is stolen.  Comprehensive insurance will pay to fix your vehicle above and beyond the deductible you have chosen.  For example, if you have a deductible of $500.00, and your damage is $800.00, you will have to pay the first $500.00, and the insurance company will cover the $300.00 that is above the deductible.  Make sure you read the terms and conditions of your comprehensive policy.

Collision:  This type of insurance will cover damage to your car when your car hits or is hit by another vehicle or an object.  It will also pay the amount remaining after you pay your deductible.  In order to give yourself the lowest possible rates, you should select a higher deductible.  If you have an older car, you may want to consider carefully if you want this insurance or not.  Be sure to read your policy carefully for the exact coverage.

Medical Payments Insurance:  This type of insurance will cover any medical expenses to you and to your passengers that are injured in an accident.  Additionally, there may be coverage if you are a pedestrian and a vehicle injures you.  Here it doesn’t matter whose fault it is.  See your policy for more specifics. 

Uninsured Motorist Bodily Injury:  This covers bodily injuries to you as well as your passengers when the other person driving has no insurance or does not have enough insurance and the crash was their fault.  In some states, there is uninsured motorist coverage for damage that is done to your vehicle.  There are a lot of uninsured motorists, so this is a good insurance to have.  Be sure the read the terms and conditions in your policy.

Personal Injury Protection:  This covers the medical, hospital, and funeral expenses of the insured, the others in the vehicle, and any pedestrians struck by the driver.  This policy is only available in certain states, but is basic coverage for in insured’s own injuries on a first-party basis. 

Property Damage Liability:  This covers you if your car damages someone else’s property.  Typically it is their car, but it could also be a house, fence, or any other personal property that is damaged in an accident.  It will also be a good idea to purchase enough of this insurance in order to cover the damage that your car may do to another object or vehicle.  Be sure to read the terms and conditions that are contained in your policy for specifics. 

Rental Car Reimbursement:  This covers renting a car if your car is not drivable or while your car needs to be repaired due to a covered accident. 

Add Your Comments about Cheapest Car Insurance For A Young Driver: