The Main Types of Coverage Every Driver Should Know for Auto Insurance

Auto insurance is not just a throw away expense. It is an important financial protection. Before you buy, you should understand what you need and if your policy is going to provide it. Luckily, there is all the information you need online for you to make an informed choice. The starting point is for you to understand the main types of coverage every driver should know for auto insurance.

Liability Auto Insurance Coverage

To begin with, you need to understand liability car insurance. Virtually all states require some level of liability coverage for registered vehicles. Liability insurance pays out if are held responsible for bodily injury or personal property damage. It doesn’t provide any coverage for your vehicle; it pays out to those who have suffered a loss due to your negligence with your vehicle. Your liability coverage will have monetary limits for bodily injury per person per accident, total bodily injury per accident and total property damage per accident.

Collision Auto Insurance Coverage

Collision auto insurance provides coverage for your vehicle if you are involved in an auto accident. If you are at fault, the policy will pay for your vehicle’s damages up to the amount listed on the policy. If another driver is at fault, their liability coverage will pay for your damages and medical expenses. If you still have a loan for the vehicle, this coverage will be required by your lender. If have an expensive vehicle that is paid for, this is an element of coverage you will want. Collision coverage will have a deductible for each claim, which will have to be met before the policy begins paying out benefits.

Comprehensive Auto Insurance Coverage

Comprehensive auto insurance also pays for damages to your vehicle, but for different reasons. If someone vandalizes your vehicle, steals your car, if the vehicle catches fire, an object falls on your car or a number of other damages that occur outside of an auto accident, this coverage will kick in. As with collision coverage, it will be required by a lender and is recommended for expensive vehicles. Comprehensive coverage will also have a deductible that must be met. Of course, you can raise or lower that deductible. Ranges are generally 0 to $1,500. The higher the deductible, the less you will pay for the coverage.

Uninsured/Underinsured Motorist Auto Insurance Coverage

Some states require uninsured/underinsured motorist coverage as a part of their minimum auto insurance requirements. This type of coverage will protect you if you are involved in an accident where the person at fault either has no insurance or his/her insurance can’t pay for the entirety of your damages. Similar to liability coverage it will include a level of coverage for bodily injury and property damage.

Auto Insurance Quotes for the Best Rates on the Coverage You Need

To find the best rates on the coverage you require, you will want to take advantage of the cost savings you can get from online auto insurance quotes. Rates from company to company can very drastically even for the exact same level of coverage, so shopping around to find the best rates can save you hundreds. Over the life of your car, this can mean thousands in savings. Use our free rate quote tool right now to find the cheapest rates on your auto insurance coverage right now!

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Finding an auto insurance company is not difficult, but finding the right auto insurance company can be challengling. Policy provisions vary from company to company, as do premium rates. When you are considering which auto insurance company to get coverage from, it pays to do some research to make sure that the company is a reputable one. You also want to ensure that your company has the assets to pay out a large claim, if that becomes necessary…
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