1. Liability Insurance
When a state requires you to carry auto insurance for your car, it’s usually the liability insurance they are focused on. In the event you are in an accident and police decide you at fault, he liability insurance covers the costs of repairing any property damaged in the accident, as well as medical bills for any injuries. Most states have a required minimum for the necessary liability insurance coverage you must have.
2. Collision Insurance
One of the problems with carrying only liability insurance is that in the occurance of an accident, you could end up without enough to cover the repair of your own vehicle. Collision insurance assists in paying for the repairs to your automobile. Should your car be totaled in an accident, a collision coverage will further pay out the value of your car. While payouts don’t cover the full value of the vehicle the amount will cover the market value of the vehicle at the time of the accident.
3. Comprehensive Insurance
Liability and collision insurance policies exclusively cover car accidents, but if something else should happen to your car you want to have extra coverage. This extra coverage applies to things such as weather damage, theft, and animal collison. By having comprehensive insurance coverage your insurer will handle most situations that come up. Comprehensive insurance policies are a great thing to have. Coverage can be costly but in the long run they will be worth having.
4. Uninsured Motorist Protection
Just because the law requires everyone to have insurance doesn’t actually mean they always do. Even if a driver has liability insurance, some states have relatively low minimums that don’t full cover the need of the incident. One of the worst things that can happen is that you get stuck with bills in an accident that wasn’t even your fault. Uninsured motorist assists with bridging the gap in these uninsured accidents.
5. Medical / Personal-Injury Protection
Treating injuries after a car accident can be costly. In order to cover those costs, medical and personal-injury protection is available. No matter who’s fault, such protection will cover your medical bills along with those of your passengers. If you have a good health insurance plan, it’s less likely that medical and personal-injury protection will be useful to you. Considering how much more a general health insurance policy covers, it should be your first choice.
6. Gap Insurance
Gap insurance is a smart choice if you’re still making payments on your vehicle. it provides the ability to pay off the vehicle if it is totaled in an accident. Gap insurance is especially worthwhile if you owe more on the car than you could get for it if you sold it today at market value. Many insurance policies will only cover the value of the car, rather than the cost to replace it. Some lenders eveb require you to have gap insurance or something similar until you pay off the vehicle, so you may have it already.