Auto insurance is a complicated matter. Many people have an insurance policy but do not exactly understand how they are covered or what they will do if they find themselves in the position of needing to utilize their insurance. Discover the basic types of car insurance and find out how to obtain the coverage you need for your particular situation.
- Collision Coverage – This is the basic insurance type that covers your vehicle if you collide into something. This covers collisions with other cars as well as if you were to run into a wall, barrier or bridge.
- Comprehensive Coverage – This covers anything that may happen to your car that is not directly related to a collision. This would include things such as theft, fire, hitting a deer or vandalism.
- Liability Coverage – This type of coverage covers the damages when you are at fault in an accident and you damage someone else’s car or property. Liability coverage is often mandated by law, so it is important that you as the driver make certain you have an adequate amount.
- Medical Payments – Medical payments pay for any injuries to the driver or passengers that occur if an accident occurred while you were driving. Medical payment insurance varies from state to state, so make certain you are covered as expected.
- Uninsured Motorist Coverage - Uninsured Motorist coverage compensates you and your passengers for injuries sustained in an accident caused by a driver who has no insurance or by a hit-and-run driver.
- Rental Reimbursement - Rental Reimbursement coverage pays expenses incurred for a rental car while your auto is being repaired due to an auto accident.
- Towing & Labor - Towing and Labor coverage pays toward the cost of towing or repairing your vehicle if you are stranded and your vehicle is not running. Some policies provide coverage for flat tire change, locksmith service and battery jump start.
- Guaranteed Asset Protection (GAP) - Guaranteed Asset Protection coverage pays the difference between the actual cash value of the car and the amount of the loan. This coverage is generally provided by a separate policy.
Now that you understand a bit more about the different types of auto insurance available, you are probably ready to find the right coverage for you. The best way to do this is to work with an independent agency that will allow you to compare insurance quotes online. By doing this, you can rest assured you are getting the best deal as well as getting the personal attention you need.