A Beginner's Guide to Car Insurance Policies
We all like to believe we're excellent drivers. But even when you try to make all of the right decisions, an accident can change your life in an instant. At the very least, a car crash will likely result in damage to your vehicle. It's also entirely possible that you or someone else could become injured -- or worse -- due to a crash. Each year, somewhere between 20 to 50 million people sustain non-fatal injuries as a result of auto accidents. Whether you're dealing with car repairs or a long physical recovery process, you'll be glad you have car insurance to help you.
However, it's difficult to know what kinds of car insurance you really need. The cost of auto insurance coverage options may vary widely depending on your location or driving history, and it may be tough to know which policies will work best for both your protection and your budget. At Best Insurance, we can connect you with auto insurance companies in the area with your requirements in mind. But to get you started, we've compiled this brief guide to assist you in pinpointing your exact insurance needs.
What are the main types of car insurance and why do I need them?
Liability insurance doesn't cover your personal property damages or your own injuries. Rather, it's used to pay for damage or injuries sustained by others involved in the accident that you caused. No matter where you live, you'll need to meet a certain minimum of liability insurance coverage in order to drive your car. It's often a good idea to invest in liability insurance above your state's minimum requirement, as this will give you extra protection.
Collision coverage will help pay for your vehicle repairs or replacement after an accident. Whether you crash into another car, a building, or a stationary object on the road (trees, guardrails, or even potholes), you'll be covered. Keep in mind that if your car is totaled, you'll be reimbursed for your vehicle's current value, rather than the purchase price. This means that if you have an older car that's depreciated in value, collision coverage might not be a smart investment. But if you have a new vehicle, it's definitely a good idea.
By the name, you might think this policy covers everything. But it actually covers everything unrelated to accidents. If a deer hits your car, your vehicle sustains weather damage, or your car is broken into or is stolen, comprehensive coverage can help you to repair or replace your vehicle. Many times, this policy is purchased in conjunction with collision coverage, as the pair will cover you in most situations. It's not required in most cases, but it gives you peace of mind should the unexpected occur.
Personal Injury Protection
Sometimes called "no-fault coverage," PIP is a type of medical payment insurance. Some states do require drivers to have this insurance, but it's optional throughout the rest of the country. It covers you, any passengers, or your vehicle's other drivers for 80% of medical expenses you might incur from an accident. No matter who's to blame for an accident, this policy makes sure your bills are covered.
Uninsured/Underinsured Motorist Coverage
Unfortunately, some drivers will disobey the law and drive without auto insurance. In addition, some drivers won't carry adequate coverage in the event of an accident. If your car is damaged or you sustain an injury due to an accident involving one of these drivers, this type of coverage will pay for your bills and repairs. In about half the U.S., these policies are mandatory. Take note that this policy applies only if that uninsured or underinsured driver is found to be at fault for the accident. It will also help you if you're the victim of a hit-and-run.
While you may not need all of these types of car insurance, most drivers will find it's best to have a combination of policies. Once you decide which policies make the most sense for your situation, Best Insurance can generate insurance quotes for those policies. This ensures you'll be getting the best coverage and the best price. For more information or to get started, get in touch with us today.
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