You do not want to be underinsured or uninsured when you look at a claim after a car accident or other damage to your car. But at the same time, it makes no sense to pay for more coverage than you need, right? This raises the question: What automobile insurance coverage do you need from one of these top auto insurance companies?
The answer, as frustrating as it may be, is that it depends. For example, a person who insures a new and rented car is probably required to have collision and full insurance coverage, but for someone who drives an older car that does not have much value, it may not be logical to purchase optional coverage. In addition, states have different requirements for auto insurance. There are 12 no-fault states that require their drivers to purchase Personal Injury Protection (PIP).
So, when it comes to determining the auto insurance coverage and limits that you must purchase, it is important to do your research. Talk to an insurance agent or insurance company to determine what is best for you.
Here is a brief summary of the types of car insurance coverage available. Click on the links to find out more about the covers.
Liability for Bodily Injury - This mandatory coverage covers expenses resulting from injuries sustained by drivers of the other vehicle and passengers in an accident for which the policyholder is found liable. Learn more about personal liability insurance for personal injury.
Liability for Property Damage - This mandatory coverage covers expenses resulting from any damage to another person's property (usually the other driver's vehicle, but could also include a fence, guardrail or other structure) in an accident for which the policyholder is found liable. Learn more about property damage liability insurance.
Medical Payments / Personal Injury Protection (PIP) - pays for expenses resulting from injuries sustained by the driver and passengers of the policy holder's car. In 12 no-fault states, this coverage is called Personal Injury Protection (PIP) and is a required cover. Learn more about personal injury protection.
Collision Cover - This optional cover pays for damage to the policyholder's vehicle due to a collision with another vehicle, an object or in the event of a car rollover. Although this coverage is not required by any state, it may be required if you financed your vehicle. The collision coverage has a deductible. Learn more about collision insurance.
Full Coverage - This optional coverage covers damage caused by something other than a collision, such as hail, fire, theft, animal contact and more. Similar to collision insurance, it is not required by states, but it may be required by your lender if you financed your vehicle. Plus, the comprehensive insurance has a deductible. Learn more about comprehensive insurance.
Uninsured and underinsured motorist coverage - this coverage, which is required in some states, pays for expenses resulting from injuries sustained by the driver and passengers of the policy holder's car in an accident caused by an uninsured driver or underinsured. Learn more about uninsured and underinsured motorist coverage.
Umbrella Insurance - This optional coverage provides additional protection against third-party liability for you and your assets in the event of an accident exceeding the limits of your automobile insurance. Learn more about umbrella insurance.
Gap Insurance - This optional coverage is designed for newer cars and pays the difference between the amount the policyholder owes on a car and the amount the insurance company would pay if the car is considered a total loss covered . Learn more about gap insurance.
Rental Coverage - This optional coverage will reimburse your car rental payments after a covered accident.
Roadside Assistance - This optional coverage provides emergency roadside assistance, such as towing and repairing flat tires. Learn more about roadside assistance coverage.
The answer, as frustrating as it may be, is that it depends. For example, a person who insures a new and rented car is probably required to have collision and full insurance coverage, but for someone who drives an older car that does not have much value, it may not be logical to purchase optional coverage. In addition, states have different requirements for auto insurance. There are 12 no-fault states that require their drivers to purchase Personal Injury Protection (PIP).
So, when it comes to determining the auto insurance coverage and limits that you must purchase, it is important to do your research. Talk to an insurance agent or insurance company to determine what is best for you.
Here is a brief summary of the types of car insurance coverage available. Click on the links to find out more about the covers.
Liability for Bodily Injury - This mandatory coverage covers expenses resulting from injuries sustained by drivers of the other vehicle and passengers in an accident for which the policyholder is found liable. Learn more about personal liability insurance for personal injury.
Liability for Property Damage - This mandatory coverage covers expenses resulting from any damage to another person's property (usually the other driver's vehicle, but could also include a fence, guardrail or other structure) in an accident for which the policyholder is found liable. Learn more about property damage liability insurance.
Medical Payments / Personal Injury Protection (PIP) - pays for expenses resulting from injuries sustained by the driver and passengers of the policy holder's car. In 12 no-fault states, this coverage is called Personal Injury Protection (PIP) and is a required cover. Learn more about personal injury protection.
Collision Cover - This optional cover pays for damage to the policyholder's vehicle due to a collision with another vehicle, an object or in the event of a car rollover. Although this coverage is not required by any state, it may be required if you financed your vehicle. The collision coverage has a deductible. Learn more about collision insurance.
Full Coverage - This optional coverage covers damage caused by something other than a collision, such as hail, fire, theft, animal contact and more. Similar to collision insurance, it is not required by states, but it may be required by your lender if you financed your vehicle. Plus, the comprehensive insurance has a deductible. Learn more about comprehensive insurance.
Uninsured and underinsured motorist coverage - this coverage, which is required in some states, pays for expenses resulting from injuries sustained by the driver and passengers of the policy holder's car in an accident caused by an uninsured driver or underinsured. Learn more about uninsured and underinsured motorist coverage.
Umbrella Insurance - This optional coverage provides additional protection against third-party liability for you and your assets in the event of an accident exceeding the limits of your automobile insurance. Learn more about umbrella insurance.
Gap Insurance - This optional coverage is designed for newer cars and pays the difference between the amount the policyholder owes on a car and the amount the insurance company would pay if the car is considered a total loss covered . Learn more about gap insurance.
Rental Coverage - This optional coverage will reimburse your car rental payments after a covered accident.
Roadside Assistance - This optional coverage provides emergency roadside assistance, such as towing and repairing flat tires. Learn more about roadside assistance coverage.
Comments
Post a Comment