While car insurance may seem like a given, if you want to maximize the amount of coverage you’re getting, it pays to take a closer look. When shopping around for car insurance, look for these eight different types of policies.
By understanding each of these eight different options, you’ll be able to find the best one for you.
Many insurance companies offer different types of car insurance policies, so they make sure that their customers are satisfied with the service they provide. In order to get this, they are offering different types of insurance policies.
All insurance companies offer full coverage car insurance policies, which include coverage for loss, medical expenses, property damage, liability, and collision. These types of insurance policies are offered by some insurance companies.
In addition to those, there are also other types of car insurance policies that are very popular. When you are buying car insurance, you need to look at the following eight types of policies and compare them with each other.
1. Uninsured Motorist Coverage (UM)
When you buy car insurance, you must get uninsured motorist coverage. This coverage is really important. If you have this coverage, you won’t be held liable for the losses you incur because of an accident caused by an uninsured driver.
If you were involved in a car accident, and the other driver wasn’t insured, the law allows you to collect money from him or her. This doesn’t mean that the other driver’s car is uninsured though.
He or she may have sufficient coverage. UM covers you if the other person has no insurance or insufficient coverage. This is very important for you and your family.
If you are injured by a negligent driver, you may lose your ability to work and support your family. If the other driver was underinsured, you will still have to pay the medical bills and other expenses caused by the accident.
This is why it is important to have uninsured motorist coverage. It is your responsibility to learn about this coverage and to buy it.
If you don’t have it, it is illegal for you to drive your car. This can lead to serious consequences. You may not be able to legally drive again.
2. Collision Coverage
Collision coverage pays for damage to your vehicle caused by another vehicle. It is not required by law but many people buy it. This type of insurance is available for both rental cars and owner-owned vehicles.
However, collision coverage does not pay for damage to your car caused by weather. It covers damage to your car only if the damage was caused by the negligence of another person.
3. Personal Injury Protection (PIP)
It is very important that you purchase this coverage because it protects you against injuries and medical bills resulting from an accident. PIP also pays for medical bills, lost wages, and funeral expenses.
It will also help you get compensation for pain and suffering. You can get this coverage for free when you buy your insurance policy.
You can also choose between three levels of coverage. The first level is up to $500 per person, $750 for the second level, and $1,000 for the third level.
If you are involved in an accident that leads to injury, you can file a claim against the person’s insurance company to get paid for your medical bills. PIP covers these expenses, including lost wages. It also pays for the rental car, if you need one.
4. Medical Payments
Medical Payments can help to pay for the medical bills you incur as a result of a car accident. You can be covered by your own auto insurance policy, or you can buy this type of insurance separately.
5. Replacement Cost Coverage
Under Replacement Cost Coverage, if your car is totally destroyed, your insurance will replace it with another one, just like the one you lost. It is important to keep in mind that replacement cars are usually more expensive than the ones you currently own.
If your car was recently stolen, it is possible that it was replaced with a newer, more expensive car. In order to protect yourself against this, you should buy this type of coverage.
This is because the price of the replacement car may be higher than the cost of repairing it. This type of coverage allows you to repair your car and get it back to its original condition. The cost of replacing the car is included in this coverage.
6. Liability Coverage
The most important aspect of an insurance policy is to understand what it covers. If you have liability coverage, you will be protected from injuries or damage to others as a result of your car accident.
For example, if your vehicle hits another car, you are covered for any damage that might occur to that car and its passengers. You will also be able to pay for any damage or injuries that may occur to the other driver, passengers, or pedestrians.
7. Loss of Use Coverage
If your car is damaged in the accident, you will need to get a replacement car or pay for the loss of use of your car. Loss of use coverage helps to pay for the cost of renting a replacement vehicle or the cost of using someone else’s car.
8. Personal Accident Coverage
This type of coverage helps to pay for injuries that you may get as a result of a car accident. You can include this in your auto insurance policy or purchase it as a stand-alone policy.
For example, if you are driving your car and suddenly a bus drives into your car, this type of coverage pays for damages that you suffer as a result of the accident. You can also include this type of coverage in your home insurance policy.
It helps to cover the damage that happens as a result of theft. This type of coverage usually costs around 5% of your premium.
Conclusion
When buying car insurance policies, it’s best to purchase the most comprehensive coverage you can. Comprehensive coverage will give you full protection on both vehicles.
As well as comprehensive coverage on items such as property damage or theft, collision coverage, uninsured motorist protection, medical payments, rental reimbursement, etc. The coverage varies from policy to policy, so always shop around.
