There are different types of car insurance offered by service providers and the package you choose depends almost entirely on the clauses you opt for as per your budget and the amount of coverage you want. Some covers are mandatory as required by the State and still others depend on the extra precautions that you would like to take.
Here are a few options that you can pick from.
Collision coverage – If your vehicle hits another or a guard rail, road divider or a telephone pole, collision coverage will pay for the costs to have your car repaired. However, the payout is not total and you have to bear a certain percentage of the bill depending on the age of your car and the type of parts that need to be replaced.
Liability coverage – This covers both damage to personal property and bodily injury in case of an accident. If it is proved that you are legally responsible for the damages, this cover will pay for the costs. It includes medical expenses for personal injuries too. A minimum amount of liability coverage is compulsory in almost every state and is required for registering a vehicle or obtaining a driver’s licence.
Uninsured or underinsured coverage – Strange as it may sound, more than half the cars on road are without any form of car insurance. So where do you send your bills for damage if you are hit by one in this category? It is recommended that you get an uninsured or under insured insurance coverage which pays for bodily injury as well as damage to property. In the USA, 22 States have made this insurance coverage mandatory while in others it can be taken as an add-on to liability coverage.
Personal Injury protection – This is on the lines of Medical Payments coverage but covers a much broader spectrum. It pays for medical and rehabilitation expenses and compensates for loss of work. It even pays for funeral costs. Having a minimum coverage is a requirement in almost all States.
Comprehensive coverage – Have this cover to protect your vehicle from any eventuality that can lead to damage and loss to your car. Whatever falls outside the purview of the usual like collision and other similar liabilities are taken care of in this scheme. It includes riots, vandalism, floods, fire and even damage from animal collisions.
Select the best car insurance coverage through a judicious mix of the must-haves and the optional within your budget.