When it comes to car insurance, there are many different types of coverage available. Knowing what type of coverage you need and how much it will cost is an important part of ensuring that you are properly covered in the event of an accident or other mishap. In this article, we’ll take a closer look at the basics of Car insurance coverage and what you can expect from each type.
Liability Coverage The most basic form of car insurance is liability coverage, which pays for damages caused by your vehicle in the event of an accident or other incident. This type of coverage covers bodily injury and property damage expenses incurred by the other party involved in the incident. Depending on your state, minimum liability limits may be required as part of your policy. Generally speaking, these limits should cover any medical bills or repairs that result from an accident caused by you.
Collision Coverage Collision coverage covers any damage caused to your vehicle as a result of a collision with another vehicle or object. This type of coverage is typically more expensive than liability coverage because it covers repair costs for your own vehicle rather than just those incurred by the other party. Additionally, this type of coverage carries a deductible that must be paid before any reimbursement is made, so be sure to factor this into your budget when deciding how much coverage to purchase.
Comprehensive Coverage Comprehensive coverage covers damage to your vehicle caused by something other than a collision with another object, such as theft or vandalism. It also covers losses due to natural disasters such as floods or fires, as well as damages caused by animals such as deer or birds hitting your windshield while driving (or even just parked). This type of insurance usually has a higher deductible than collision coverage but can save you from paying out-of-pocket for unforeseen events like these should they occur.
Uninsured/Underinsured Motorist Coverage Uninsured/underinsured motorist (UIM) coverage protects you if you are injured in an accident with someone who does not have enough insurance—or none at all—to cover all expenses related to the incident. UIM also pays for damages above and beyond what was covered by the person at fault’s policy up to certain limits set forth in your policy agreement.
Towing & Labor Costs Towing & labor costs cover the cost associated with having your vehicle towed after an accident if necessary and any labor needed to repair it afterwards. Many policies offer roadside assistance services that provide help with changing tires and jumpstarting dead batteries free of charge; however, some policies may require additional fees for these services depending on how comprehensive they are and where they are offered (e.g., within city limits vs outside city limits).
Rental Reimbursement Rental reimbursement helps pay for rental cars while yours is being repaired due to damage from an accident or other incident covered under one’s policy agreement up to certain limits set forth in their policy agreement; however, many policies do not include rental reimbursement at all so it’s important that you check first before assuming it’s included in yours!
Understanding car insurance can be tricky–there are many types available with varying levels of protection–but knowing about them ahead of time can help you make sure that you have adequate protection without breaking the bank on premiums each month! It’s important to be familiar with each type before making a decision on which one best fits your needs so that if something were ever to happen while driving, you’ll know exactly what kind (and how much) protection will be available under your particular plan! With so many options available when it comes to car insurance, doing a little research now can save you lots down the road!
