When you’re trying to shop for car insurance, it helps to know what you’re doing what with all of the various different coverage types available. You can’t legally drive on the road without auto insurance cary, so in order to protect you and your automobile and comply with the law, a good policy is a high priority.
But you can’t get the right policy without knowing what you need to buy. Policy coverage options and limitations can vary from one driver to the next, the coverage you purchase should be tailor-made to cover the type of car you drive. You also don’t want to pay extravagant premiums either, so maintaining a good, clean driving record is your best bet for paying as little as possible for the coverage you need.
Not every driver will need the same coverages and limits. Some states set mandatory minimums on both. You’ll need to check with your local and state laws to ensure that you have the right amount of coverage to keep you fully protected on the road.
So before you start to do your research into buying car insurance, here’s what you need to know.
Nearly every state in the United States mandates that you hold some form of liability coverage. This is because liability covers any accident in which you are deemed at fault. This policy will cover the costs incurred by a second or third party in the event you damage or cause bodily harm.
So let’s say you plow into another automobile or crash through a fence in someone’s front yard, your liability coverage will pay for the all the repairs and/or medical expenses that come about as a result of the collision, up to your policy limits.
Just keep in mind, your liability policy will not cover those same costs that you incur as a result of the accident. If your car is damaged or you smash into a fence on your own property, don’t expect your liability coverage to take care of those costs.
Collision and Comprehensive Coverage
This type of policy covers your costs. Most drivers will typically buy liability and collision and comprehensive together at the same time, so you are covered no matter what gets damaged, whether you’re at fault or it’s the other guy’s fault.
If you sideswipe a guard rail, back into a parking lot sign, or your car hits a patch of ice and you rear end the guy in front of you, your liability policy will pay for repairs and medical bills of the other party, and your collision and comprehensive will make sure you can repair your vehicle and any other belongings that might have been damaged within.
Another thing to keep in mind with this form of coverage is that your expenses will be paid out no matter what type of misfortune you and your car might encounter. Just as long as the damage is covered under the various perils that are included in your policy. These might include fire, inclement weather, and various other “Acts of God” that you can read more about in the fine print of your coverage.
Uninsured/Underinsured Driver Coverage
You know that it’s important to be a law-abiding citizen behind the wheel and maintain updated car insurance. Unfortunately, not everyone has the same outlook on remaining compliant with the law and they will actually take their automobile out on the road without holding an insurance policy to protect their fellow drivers and themselves.
It doesn’t matter why they are driving without proper coverage, the bottom line is they are putting you and themselves in jeopardy. Should you get into a car accident with one of these folks, and they are the at-fault party, you will most definitely be left to pay your own medical and car repair costs.
But not if you have uninsured or underinsured driver coverage. Adding this type of coverage to your policy will keep you covered even if the other driver doesn’t have any of their own. Your insurance provider will cover all of your repair and medical expenses if the other driver is at fault and they don’t have sufficient, or any, coverage.
Rental Car Coverage
This is more of a personal preference and not really a crucial aspect of your coverage. You may want to consider if you really need this before you buy, as it will increase your insurance premiums. As you might have guessed, this policy ensures that your rental car is paid for should you need to get one while your car is being repaired due to an accident.