Exploring The Main Types Of Auto Insurance Coverage

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Navigating the World of Insurance

The world of insurance is changing. While you used to have to meet up with an insurance agent in person to discuss your policy options, you can now begin a new insurance policy right online. When I first signed up for an auto insurance policy, I realized that signing up right online led to confusion when I didn't have an agent with me to discuss which policy was best for me. Thankfully, I realized I could chat with an agent right on the website. I then began researching insurance and learned a lot about many types of insurance during the process. I find the ever-changing world of insurance so interesting that I continue to research it and thought that I would help others by posting what I learn on a blog. I hope I can help you make good insurance policy decisions! Check back often for new posts!


Exploring The Main Types Of Auto Insurance Coverage

12 March 2021
 Categories: Insurance, Blog

Buying your first auto insurance policy can be a daunting experience, especially if you have no idea what cover to choose. It gets even more confusing when you find that your car insurance agent offers various insurance covers that seem quite similar. One important thing to note here is that the premium goes up as the cover increases. That's why you should take your time to understand what type of cover suits you best.

On the plus side, a reputable auto insurance agent will allow you to customize your plan so that you can eliminate what you don't need. This way, you won't have to compromise on your budget. Take a look at these three types of car insurance covers.  

1. Liability Coverage

The liability cover is the minimum legal requirement for any car owner in the United States. This type of insurance exists to shield you as the driver if you happen to cause an accident. 

It applies as long as you are held responsible, whether you directly caused it or not. The liability cover caters to any expenses in the form of medical bills, property damage, or other related consequences to the victim. 

Some notable incidents may include:

  • You crashed your car into a neighbor's property
  • You're responsible for an accident that injures another driver
  • You've hit someone's car from behind at a red light stop.

Here, the minimum amount that should be paid differs from one state to another.

2. Collision Insurance Coverage 

This form of coverage caters to any damage to your vehicle due to an accident that you have caused. Sometimes, the blame may not all fall on you, but you'd have to engage in a legal battle to prove it. 

The collision insurance covers any repair expenses to your car as the auto insurance agent legally tries to prove that you're not at fault. In most cases, they end up getting back their money. In case you're involved in an accident that wasn't your fault, the other driver's auto insurance policy will settle any damage costs on your car.  

3. Comprehensive Coverage

This type of coverage is meant to cater to any damage expenses that aren't a result of a collision. It could be that you hit a deer or your vehicle was vandalized. Natural calamities such as floods and earthquakes may also cause damage to your car. A comprehensive insurance cover will also handle any costs related to such occurrences. 

It's worth remembering that you don't have to get this type of coverage. However, it's recommended that you have a comprehensive cover, especially if you have got a new car or a much more expensive model.  

Contact a local car insurance provider to learn more about your options.