Car insurance is something every driver needs to have but can often be confusing with the myriad types of coverage included in an average plan. It’s important that you understand what an insurance plan does and does not cover before you opt to sign up. Here are four types of coverage that are almost always necessary.
Liability Coverage
Liability coverage is perhaps the most important type of coverage you can carry on your car. In fact, this type is among the ones mandated by almost every state in order to legally be able to operate a motor vehicle. This coverage protects you financially from liability if you injure someone else or damage their property in a car accident. Often this coverage is divided up into Bodily Injury liability and Property Damage liability.
Medical Payments Coverage
Medical payments coverage pays for medical care, lost wages and funeral costs for you and anyone in your vehicle who is injured in an accident. Before signing up, compare with your health insurance policy to see if this coverage would be beneficial or unnecessary to you. In some states, Personal Injury Protection coverage is available as well and even required. It also helps pay for your medical bills if you are involved in an auto accident. An auto injury lawyer will be familiar with the laws in your state.
Comprehensive and Collision Coverage
Comprehensive and collision cover the cost of repairing or replacing your vehicle itself. Collision covers damage sustained in a collision, such as with an animal or another vehicle, while comprehensive covers damage sustained in other ways, including from hail, falling tree branches and other sources. The only time carrying comprehensive and collision coverage may be a bad deal is when your car is old enough that its value and the cost of carrying coverage becomes more than the potential payout you would receive.
Uninsured and Underinsured Motorist Coverage
This coverage is designed to protect you in case you are involved in an accident with a motorist who is not insured or not insured enough to cover the costs of damages. The legally mandated minimum coverage is often not sufficient to cover the costs of accidents, yet many drivers only carry the bare minimum. This type of coverage can also pay for hit-and-run accidents.
You should make sure your car insurance includes these types of coverage. Be certain the levels of coverage are sufficient to cover the various costs of an accident as well. You deserve peace of mind when on the road.
Author Bio: Emma Sturgis is a freelance writer based out of Boston, MA. She writes most often on health and education. When not writing, she enjoys reading and watching film noir. Say hi on Twitter @EmmaSturgis2
