Car insurance may seem like a waste of money, but when you get into a car accident you can quickly see it’s value.
Let’s start with the basics. Insurance is essentially an agreement between you and the insurance company. You agree to make premium payments and they agree to provide financial support in the event that you are in an accident or your car is otherwise damaged. You can choose varying levels and types of coverage to meet your needs and your budget. Here are few of the types of coverage you can expect to be offered when you obtain a car insurance quote.
Liability Coverage
Liability is generally the minimum amount of coverage that you must buy for an auto insurance policy. Most states require that all drivers carry liability coverage. This type of coverage protects others in the case where you are at fault for an accident. It pays for property damage, medical expenses and sometimes lost wages and other expenses for others involved in the incident. Liability coverage does not pay for damages to you, your vehicle or your property.
Comprehensive
One common type of supplementary, or optional coverage, is comprehensive insurance. It can be added to your policy for increased protection. Comprehensive, which is often paired with collision coverage, pays for certain damages to your car that are not due to a collision with another vehicle.
Comprehensive covers things like:
- Natural disasters
- Storms
- Fire
- Flood
- Hail
- Collision with an animal
- Theft
- Vandalism
For the most protection, you can combine comprehensive coverage with liability and collision coverage.
Collision
Comprehensive protects you from damage to your car from certain events, while collision coverage is used for damage from a collision with another vehicle or with an inanimate object. For instance, if you slide on ice during bad weather and collide with a stone wall, your damages would be covered under collision insurance.
You can only purchase collision coverage if you also purchase liability and comprehensive insurance. Also, collision can be a little pricey. Most people balance the cost by having a high deductible amount, so their monthly payment is lower. We’ll talk about what a deductible is next.
Deductible
A deductible is the amount you decide you will pay, before the insurance company starts paying for your damage. In return for paying part of the damage costs, the insurance company let’s you pay a little less each month. A high deductible means you pay more if something happens, but less each month. You will have to determine the right balance for yourself, and how much you could realistically pay if you have an accident.
Other Coverage
Uninsured motorist coverage protects you when another driver causes an accident who doesn’t have car insurance.
Medical payments is additional coverage for injuries to you or your passengers should you have a car accident that is your fault.
How to Get a Car Insurance Quote
InsuranceWins has you covered. Use our quick form to find out how to best protect yourself, your passengers, and your investment in your vehicle.
