There are a number of variants that determine what one will pay with their car premium, but the basics behind coverage remain the same from person to person. Depending on where you live, typically you will find six different kinds of coverage for new car insurance. Here is a quick overview of what you can expect.
The first kind of coverage you are going to find with new car insurance is liability. All states require a minimum liability insurance of some sort in order to pay for any damage that you may cause to others such as bodily injury or property damage. It will also pay for legal bills if you cause an accident.
After looking over the liability the next area is medical payments or personal injury protection. This kind of coverage is going to pay for the medical expenses that may be suffered by you or the passenger following an accident. This will also cover you if you are driving someone else’s car with permission. Personal injury protection covers medical expenses and lost wages.
The third kind of coverage that is available for new car insurance is collision. Collision coverage is going to pay to repair your own vehicle in the event of an accident. If the repair costs exceed 70 percent of the cars value it will be considered totaled. At this point you will be offered the actual cash value of the car.
With comprehensive coverage, the company will pay for damage to your car that doesn’t come from a car accident. Anything along the lines of a fire, vandalism, natural disaster or theft falls into this category. One of the main advantages to comprehensive coverage is that your windshield will be covered which is huge for people in certain states.
The next coverage you may need to look at is uninsured or underinsured coverage. This will pay for your medical bills if an uninsured driver hits your vehicle or if you are involved in a hit and run. With underinsured coverage, you will be reimbursed if someone causes an accident but doesn’t have enough insurance to cover all of your medical bills.
Once you get through all of the primary coverage options available, you will then want to glance over the extras that can be included with new car insurance. This ranges from towing and roadside assistance to gap coverage for a new vehicle. The bottom line is insurance is a must-have and it is up to you to determine what is best for your vehicle and your situation.