Auto insurance is a requirement to drive legally in any state. Many people find insuring a car to be a complex and intimidating experience but it doesn’t have to be! The following explains the different types of car insurance so you can know which would be the right kind for you.
Liability insurance is the minimum of coverage a driver can carry. It pays for the damage caused by one driver to another in an accident. Bodily injury liability goes one step further by covering medical bills and loss of income to the victim due to a collision. It also provides funds in case of pain and suffering, or death. Property damage liability covers the victim’s car as well as any homes, trees, fences and shrubs that are damaged because of an accident.
Comprehensive insurance will cover non-collision related damage that occurs with a personal vehicle or a vehicle that person happens to be driving. This includes theft, vandalism, weather events and fire. This type of insurance is required by banks, if a car is financed. The cost of this coverage can be lowered by raising the deductible.
This coverage will pay for personal vehicle damage due to an accident caused by someone else. Cambridge auto insurance advises drivers to not carry collision coverage if the car is low-value. This can cause a situation where the cost of the insurance is more than the value of the vehicle itself. As with comprehensive coverage, having a high deductible will keep premiums at a lower cost.
Uninsured and Underinsured
This insurance will cover the damage caused to a personal vehicle by someone who either did not carry car insurance or was underinsured. The coverage is available in both collision and liability. It should be noted that the repercussions for driving without insurance can be very serious. The driver can be ticketed, fined and could lose their license, if caught more than once, leading to more difficulty and cost with obtaining insurance. It is always best practice to carry proper coverage.
Car insurance can be confusing and expensive, but it is well-worth the investment to protect a vehicle from damage and loss, and to protect the driver from possible expense and legal problems. A consultation with the Cowan Insurance Group can help a person determine if they have enough coverage. The list above is a helpful guide before contacting an experienced insurance agent for assistance.