Posted on: 29 June 2022
When purchasing a car insurance policy, there will several different coverage options which you can choose to either accept or decline. Which options you choose to accept will ultimately determine just how much coverage your policy provides. That is why it is so important to understand what type of coverage each option includes so that you can ensure you are getting the protection you need. Continue reading to learn more about five of the most common options you will have available to you when purchasing auto insurance coverage.
Liability coverage is currently required by law. However, while you may not have a choice regarding whether or not to purchase this coverage, you do have an option regarding how much coverage your policy offers. You must carry both property damage and bodily injury coverage. The higher you choose to set your maximum payout in each of these categories, the more likely your policy will be to cover the full cost of any claim that is filed against your liability coverage. This coverage offers protection for other drivers if you hit them. There is no coverage for your own vehicle included in liability coverage.
Collision coverage is a type of property damage insurance that offers protection for your own vehicle if you ever cause an accident. Your collision coverage will cover the cost of repairs to your vehicle minus your deductible up to the current value of your vehicle. The more valuable your vehicle is, the more likely you are to benefit from this type of coverage.
Comprehensive auto insurance provides coverage for a wide variety of perils excluding accidents. For instance, if your vehicle is stolen and is unable to be recovered, comprehensive coverage will cover the cost of replacing this vehicle. Comprehensive coverage also offers protection for damage to your vehicle as the result of severe weather.
Uninsured/underinsured motorist coverage is also broken into property damage and bodily injury coverage. The purpose of this auto insurance coverage is to ensure you are covered if you are ever involved in an accident with a driver who either has no insurance coverage or inadequate insurance coverage. While uninsured/underinsured property damage coverage is always optional, some states do require you to carry bodily injury coverage in this category.
If you are involved in an accident, the cost of renting a vehicle while yours is getting repaired can quickly add up. With this auto insurance coverage, you will be able to obtain a rental car at little or no cost to you while your vehicle is being repaired.
For more information, contact a local auto insurance agency.Share