It should be noted that there are different types of auto insurance coverage. We will review they key types so you can better understand them and include important ones in your policy as appropriate.
Probably the most common and important type of auto insurance coverage is liability coverage. The type of coverage protects you against loss which can arise from damage to people and property from an at fault accident.
If you cause an accident and this in turn damages other vehicles or property, you can be held personally liable. In addition if the accident injures other people, they may have the right to sue you for damages in order to pay for any medical care as well as the financial impact from being unable to work or from pain and suffering arising from the accident.
Liability coverage pays for these expenses. It also can provide you with legal assistance should you be sued for damages. Again as indicated earlier, without this kind of coverage you could otherwise be held personally liable for damages which may arise from an at fault accident. If you don’t have sufficient financial resources at hand, you could lose any assets you own like you home. It can certainly be a devastating situation.
It is therefore very important that you choose an adequate level of liability coverage. You should consult with your insurance agent or customer service rep to help to determine the best level for you.
Another type of insurance coverage is property damage. This covers you against loss associated with damage to any property as a result of an accident. Other types of coverage can include uninsured motorists, medical expenses, and collision and comprehensive.
Collision coverage will pay to repair or replace your damaged vehicle as a result of an accident. And comprehensive coverage will cover for theft or vandalism. Both of these coverages normally have a deductible associated with them. It can range from $100 to $1,000 or more. This means that the insurance company will pay for a portion of the loss and you are responsible for the balance.
When you structure your insurance policy, make certain that you have the right types and proper amounts of coverage included. It is usually a good idea to include road service or rental reimbursement coverage. The cost is fairly low but the benefits can be significant.
In any case your insurance agent or customer service rep can help you to make good choices.