There are seven types of auto insurance coverage available. Though what you should opt for depends on the personal needs, knowing them all provides the key to finding the right coverage.
It is the most general insurance needed by the state authorities. In case you meet with a car accident and it is decided to be your fault, the liability insurance covers the repairing charges of the damaged properties and the medical bills resulting out of physical injuries. In all states there is a minimum requirement, but it is better to have more coverage for protecting the assets as you are liable to meet the expenses exceeding the insurance coverage limit.
If there are substantial damages in any accident you have to pay for others people damage first and it may happen that you have nothing left to take care of your own car. For this reason it is prudent to have collision insurance to cover such repairs. Further if your car is fully smashed in the accident the coverage help you to get the value of the car before the accident. However, this is not ideal for those who are driving very old cars.
This takes care of losses not occurred due to car accidents such as theft, damage due to extreme weather condition, animals colliding with the car. Comprehensive Insurance provides coverage against such situations and this is costly. It may not be worthy to have this coverage if the car is easily replaceable and one can also lower the premium by installing anti-theft gadget in the car.
This insurance coverage may be termed as a low cost add-on to the other insurance policies. This helps in situations when one gets stuck in an accident due to the fault of the other driver, who has no insurance coverage and also do not have enough funds to pay for the damages caused or make payment of medical expenses.
Cost of medical expenses due to accidents could be sky-high. These insurances cover all such costs irrespective of considering who is at fault and also covers the co- passengers. But for those who are having good health insurance coverage this insurance may not be that useful. However, considering the health insurance coverage, this should be given first priority.
Such insurance coverage is available in few states only. It covers damage of properties, personal injuries and the medical expenses arising out of these without looking for who is responsible for the accident. Choosing this insurance depends on the coverage obtained by other insurance plans and their costs. If other options are OK this could be an expensive one.
Such insurances are considered when someone owes more on the car tan the present sale value of the car. The insurance companies cover the value and not the cost of replacement of the car, Gap insurance is worthy in such cases.
Auto insurance is a contract between the customer and the insurance company.
Finding home insurance gets better if you have some basic knowledge about it.