It is necessary to get some form of auto insurance not only to protect yourself from financial damages when your car gets involved in a collision or when you are liable for backing up on your neighbor’s mailbox for example. State requirements for car insurance coverage vary from one state to the next that’s why it is important for you to know the minimum coverage called for by the law.
Before purchasing a policy, getting car insurance quotes from a number of providers in your area is advisable. You should also keep in mind that there are different factors that dictate how much your premium will be. While looking for car insurance quotes, you should also learn the basics of car insurance so you are sure that the policy you will purchase will cover all your car insurance needs.
Every person who drives would need some form of car insurance coverage. When one is purchasing car insurance, you are paying for what insurers call a policy. A policy’s price or premium is based on many factors. Factors such as the type of car you have, your driving record, and your budget will play important roles on which car insurance policy you will get. One has to note that policies are packaged containing different types of coverage and the first step of course is to learn about these various coverage types.
If you are getting the basic insurance requirement called for by your state, you will be paying a minimal fee monthly, quarterly, or yearly. Your premium will go up once you add other coverage types to your basic policy.
Some of the coverage types below are optional while some are required by law depending on which state you are in.
Liability Coverage – This type of coverage covers accidental property damage and bodily injury you caused on others. Injury coverage under liability insurance pays for medical expenses, the other person or persons’ pain and his or her lost wages because he or she cannot go to work due to the injury you have caused. Property damage on the other hand covers for the money needed to pay for damaged property. State laws have a minimum requirement for liability coverage but if you feel that this minimum coverage is not enough, you can always get more.
Collision Coverage – This coverage type pays for collision damages on your vehicle if it gets hit by another car or gets damaged because of an object on the road.
Comprehensive coverage covers damages on your car that was caused by fire, flood, or other non-collision-related incidents.
This type of insurance coverage pays for the medical expenses for an auto accident you are involved in. With this coverage, it doesn’t matter who is at fault. It will be used to cover for hospitalization.
Personal Injury Protection
Personal Injury Protection also known as PIP is required in some areas of the country. It pays for your hospitalization and other medical expenses whether the accident was your fault or not.
Other coverage types to take a look at include uninsured and underinsured motorist coverage and rental reimbursement.