Car Insurance Policies Explained

October 8, 2019


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It can sometimes be difficult to know what type of insurance you need for your car, so here are a few simple guidelines for choosing the right policy for your new set of wheels:

Liability insurance:

This type of policy covers you if you’re in a car accident that was determined to be your fault and will cover the cost of repairing property that may have been damaged in the crash, plus any medical bills should you require hospital treatment.

In most states, there is a minimum requirement for how much liability insurance you purchase, and if you can afford it, it’s sensible to have a policy that is above your state’s minimum liability requirements, giving you extra protection if you’re found to be at fault of causing an accident in your car.

Coverage for collisions:

Collision coverage will pay for any repairs to your car if you’re involved in the type of accident that this policy covers, and if your car is a write-off, it will also pay the value of your car. For older cars, collision coverage may not be worth it.

Comprehensive insurance:

Let’s say your car is badly affected by weather damage, you have a collision with a large animal, or your car is stolen, comprehensive insurance will cover you under all these circumstances. While this type of coverage may cost more, it covers you for more. However, if you can’t afford this type of insurance, it may not be necessary anyway, especially if your car can easily be replaced.

Personal injury protection:

This type of insurance coverage can be a life saver if you’re involved in any type of accident and need medical treatment for you or your passengers, no matter who was at fault. Medical bill costs can mount at an alarming rate, but Personal Injury Protection will help you manage them, but do note that this type of insurance is not available in every state.

Protection for uninsured or underinsured motorists:

If someone is found to be legally responsible for paying damages after an accident, but their car insurance isn’t high enough to cover the full cost of expenses incurred, or they don’t even have coverage, then Uninsured and Underinsured Motorist Protection could significantly reduce the risk of you having to pay out large sums of money after a collision.

For more detailed advice and guidance about what coverage would best suit you and your motoring needs, make an appointment to discuss your insurance policy options with a reputable insurance firm.