There are several different types of car insurance available to those shopping for the right auto insurance policy or policies for their vehicles. Depending upon your financial situation and the vehicle(s) you want to insure, you will have different car insurance needs. There are quite a few different car insurance policies and each type of policy can be tailored to fit your specific needs.
Here are some of the most common car insurance policies and how they can be manipulated to provide the coverage you need.
Different Types of Car Insurance: Liability Insurance
Liability car insurance is a type of insurance that protects you from having to pay for damage to others and their property. It protects you from a lawsuit, but it does not pay for damage to yourself or your property. Most states require a specific, minimum amount of liability car insurance. If you have an older vehicle that is paid off and does not have significant value, you can save money on car insurance by simply going with liability insurance that meets your state’s minimum requirements.
Different Types of Car Insurance: Uninsured/Underinsured Motorist Insurance
Depending upon the state in which you reside, you may have to purchase a certain amount of uninsured/underinsured motorist coverage. This coverage protects you in case you are involved in an accident at the fault of another motorist and they have inadequate or no car insurance. Yes, car insurance is a requirement, but not everyone always follows these regulations. Also, it is easy to get involved in an accident in which the other party does not have enough insurance to cover the damages to you and/or your property.
Different Types of Car Insurance: Collision Insurance
Collision insurance will cover damages to your vehicle if you are involved in an accident and are considered the one to be at fault or no one else is considered to be at fault. It will cover repairs to virtually all aspects of the vehicle or vehicle replacement if the car is totaled. If you still owe money on your vehicle, your lender will require collision auto insurance coverage until you have paid off the loan.
Different Types of Car Insurance: Comprehensive Insurance
Comprehensive car insurance is perhaps the most flexible of all different types of car insurance. It covers your vehicle for a variety of damages outside that of a collision. Most comprehensive policies will cover your vehicle for vandalism, fire, theft, explosion, civil commotion, glass breakage and many other types of damage. What makes it so flexible is that you may be able to increase or decrease the coverage by adding or removing coverage options. As with collision insurance, you will need a certain amount of comprehensive coverage if you are still paying on your car loan.
Different Types of Car Insurance: Shopping Around
Shopping around for auto insurance is the smart way to choose which type of car insurance you need. Rate quotes can help do this easily and quickly without having to leave your home. These quotes allow you to compare rates of competing car insurance companies to find the best deal for your situation. You can easily save a considerable amount of money on each of the different types of auto insurance by shopping around with online rate quotes.