For car owners car insurance is essential. With the rising costs of medical bills and car repair, having even the minimum required coverage is required to help you save money and stay covered in case of an accident. Car insurance comes in many packages and forms, and it varies per provider and state.
Types of Car Insurance
The different types of car insurance differ in terms of budget and what they cover. There are different packages within a single type of car insurance that are adjusted to meet different needs.
Here are the common types of automotive coverage:
- Liability Coverage
Liability coverage is an insurance for either bodily injury or for personal property and is applicable in covered car accidents.
After a collision, you will have to pay for damages if you were determined as the party that’s legally responsible. If you are the at-fault party, you will have to shoulder any injured party’s medical expenses, personal injuries and property damage.
Most states have a minimum requirement of liability coverage for drivers, but it’s recommended to apply for a car insurance that goes above the requirement. In the event of an accident, you won’t have to worry about paying out-of-pocket once the policy limit is hit.
- Collision Coverage
Collision coverage is used to pay for damages to your own car, in the event of a covered accident. This coverage applies when you hit another vehicle or a fixed structure like a lamp post or a telephone pole. The repairs will be shouldered by the insurance.
Collision coverage can even be used in the event the car is totaled, meaning the cost of repairs has already exceeded the value of the vehicle. This type of coverage is especially recommended if the car is assessed to have high value.
- Comprehensive Coverage
Comprehensive coverage is a type of car insurance for events outside of a covered accident or collision, such as human acts like vandalism, theft and riots, weather events like floods and hail and also animal collisions and fire.
This type of coverage is costly, and may or may not be necessary depending on the car’s usual environment.
- Uninsured/Underinsured Motorist Coverage
Not all motorists get sufficient car insurance, which is where the Uninsured/Underinsured Motorist coverage comes in. This type of car insurance applies when the at-fault party in a collision cannot pay for the damages done to your own car.
Without this insurance, the repairs for your own car will be difficult. You might receive none or less than what you need. This type of insurance can often be added to existing packages easily.
- Medical Coverage (MedPay) and Personal Injury Protection (PIP)
MedPay is a type of car insurance that would pay for the medical bills of you or anyone inside your car. PIP is an extended form of this insurance, covering other bills like rehabilitation expenses, funeral costs and so on. This is recommended because costs quickly add up, especially for unexpected medical bills.
Written by Marc Laferierre, owner of Dents Unlimited. Dents Unlimited offers the best collision repair Columbia MO has to offer.