6 Types Of Auto Insurance
When a driver is involved in an accident, if the car needs any repairs or the driver has needed medical attention, insurance will seem like a godsend. There is a broad range of insurance options available to drivers, and some can find choosing between them quite difficult. When you are looking for auto insurance, you don’t want to go for the first option that you come across. Make sure to shop around and see what different insurance companies can offer you. You want to pick an auto insurance policy that best suits your needs.
If you aren’t sure about the different types of auto insurance that are available, below is a list of 6 different types and everything that you need to know about them.
1. Collision insurance
If you are involved in an accident and you have a collision insurance policy, your insurance company will pay for any repairs that your vehicle needs. If you are in an accident, and your car is totaled, this type of insurance policy will also pay you the value of your vehicle before it was involved in the crash.
Collision insurance is worth having if your car is a lot newer and is still great in value. If your vehicle is older and its value is low, that particular insurance probably isn’t worth paying for, since if you were to get into an accident and the car was totaled, you wouldn’t get much of a payout.
2. Protection against uninsured or underinsured motorists
Although auto insurance is mandatory, it still doesn’t mean that everyone has it. There are a lot more uninsured drivers out there than you will realize. There are also many drivers who, in the event of an accident, are underinsured and would not have enough money to cover the expenses. Without protection against underinsured or uninsured drivers, you run the risk of being left with hefty bills for an accident that wasn’t your fault.
3. Liability insurance
When a state requires that you have some form of auto insurance for your vehicle, liability insurance is often the one that drivers select. If you were involved in an accident and you are found to be the one at fault, liability insurance would cover any necessary costs of damage or medical bills.
One of the problems with having liability insurance only is that if you are involved in an accident, you may end up not having enough money to repair your vehicle as well. If any claims exceed the limit of your coverage, you must take personal responsibility to pay for them.
4. Comprehensive insurance
Comprehensive insurance covers more than just a car accident. Whether your vehicle is damaged due to weather, an animal collision or by theft, comprehensive insurance will cover you. Comprehensive insurance can be a bit costly, but if you can afford it, it’s worth getting – especially if your car is new and is not easily replaced.
5. Medical and personal injury insurance
When a driver is involved in a car accident, injuries are almost inevitable – they may suffer anything from whiplash to a life-threatening injury. Medical and personal injury insurance will cover any medical bills of the driver and also the passengers.
6. No fault insurance
No fault insurance is not available in all states – it doesn’t matter who is to blame, this auto insurance will cover medical bills and property damage. No-fault insurance can be a bit pricey, so you need to compare all of your other options before making a decision.
from Ed Cuellar Insurance Agency http://edcuellar.com/2016/10/04/6-types-of-auto-insurance/