These days, driving a car without auto insurance is virtually unheard of and downright illegal in many cases. The weight of liability, if not state law, is too foreboding to opt out of buying insurance.
In the case of an accident that causes significant auto damage, you want to make sure that cost of repairs can easily be covered. If people are injured because of your accident, you especially want someone to have your back. An insurance policy acts in this capacity.
However, a wide variety of auto insurance coverages exist, enough to cause some confusion while pursuing a policy. While the requirements may vary from state to state, there are types of policies that, at the minimum, cover the cost of the most crucial scenarios. Following are a few.
A personal liability insurance is designed to compensate for property damage or injury to others in the case of an accident. The liability coverage is typically formulated on a per-person basis regarding injury and per accident regarding damage to vehicles or other property.
Uninsured Motorist Coverage
Uninsured motorist coverage is required across 19 states. It compensates you in case you sustain car damage and/or injury from another motorist who is without insurance. In this case, your insurance pays for your medical expenses.
In the case of financing a new car or leasing a vehicle, you lender will most likely require particular levels of insurance coverage, including:
Collision—This coverage pays out in the case of your car hitting an object or another vehicle. At the same time, it also covers any damage sustained from a car flipping over in the middle of the road.
Comprehensive—According to the Insurance Information Institute, over a nine-year period, as much as 78 percent of insured drivers purchased comprehensive coverage on top of their liability insurance. As expected, comprehensive covers all damages, including vandalism, projectile damage, animal havoc, or damage wreaked by mother nature. Comprehensive insurance even pays out for cars stolen from the owner.
Consider all of these coverages and policies before shopping for your insurance. Remember, however, to obtain some kind of policy immediately upon buying a new vehicle. Accidents, as we all know, can even happen after driving off the car lot. Do your insurance homework before leaving the dealership and call your chosen insurance agent immediately after purchasing your vehicle.
Auto Insurance, iii.org
What Does Car Insurance Cover?, nerdwallet.com
Do I need comprehensive car insurance?, confused.com