When it come to buying car insurance the consumer has some options on the type coverage they would like to purchase. Every state has laws regarding the minimum coverage that a driver must have, but there are a variety of optional forms of coverage that a driver may get to have an added level of protection. For the most part getting the minimum amount of coverage only protects the driver to a limited degree. That is why many drivers choose to geta variety of optional forms of coverage.
Auto liability coverage
Liability coverage is probably the most common form of car insurance in the United States. This is due to the fact that every state requires drivers to have some level of liability insurance. Auto liability insurance is to cover the driver in case they are involved in an accident that is their fault. This coverage is intended to cover the expenses of any of the damage they may have caused. Auto liability insurance breaks down into two categories. They are bodily injury liability and property damage liability. State laws will require a minimum amount of coverage for both forms of liability insurance but the driver may exercise the option to increase the amount of coverage they have in both categories.
Collision insurance is intended to help with the cost of damage to the covered vehicle as a result of a collision. Collision insurance will cover the vehicle no matter who is at fault. It covers events like vehicle to vehicle collision, automobile rollover and collision with an object. The coverage can pay for repairs, replacement parts or payment of the market value of the vehicle. A payment of the market value would be in the case of the vehicle being deemed totaled, that means the total cost of the repair exceeds the market value of the vehicle. Collision coverage does require that the policy has a deductible. There are some exceptions regarding collision coverage, it is important to understand what the particular policy will cover.
The option of a comprehensive insurance policy is intended to cover the vehicle in the event of damage that is not caused by a collision. A comprehensive insurance plan would cover for events such as fire, flood damage, theft, vandalism, wind, hitting an animal and other weather related events. Plans with compressive insurance may vary depending on the insurer and it is important to know what qualifies as a covered loss. Comprehensive coverage is recommended for new cars and may be required for a car that is financed. Most insurers do require a deductible with a plan that includes comprehensive insurance.
An individual that is shopping for car insurance has a few options when it comes to the coverage they will get. It is especially important to get to know these types of coverages if you are a young driver looking for car insurance. These are the three most common forms of car insurance; however drivers do have a variety of other coverage options that they can add to their plan. When you are looking into getting a car insurance policy, it is important to understand your options and get the policy that is best suited to fit your needs.