Driving without a car insurance is legally forbidden. But which car insurance best suits your requirements is a matter to consider. You may also wonder whether you can save money on your insurance plan. Here we are going to discuss the main five types of car insurance so that you can choose the one that best suits your needs.
1. Liability Insurance
The Liability Insurance is demanded by all States. This type is designed for providing you financially in case you are involved in an accident, which resulted in someone’s property damage or someone’s bodily injury. As a rule, all States have a certain minimal limit that is required for all drivers. Anyway, in most cases it doesn’t cover the expenses you owe to pay. In such cases, you have to pay the difference out of your pocket. Therefore, it is advisable to get an insurance coverage which is above the required limit. Certainly, which car insurance you will choose depends on you, yet this one is mandatory.
2. Collision Coverage
This insurance coverage will protect personally you and your car in case you caused a car collision. It will pay both your medical expenses and the cost of your car repair. Anyway, if the cost of the repair is higher than the value of your car, the company will pay the value of your car. This is definitely beneficial, yet in the case of having an old car, you may need now any collision coverage (this will cost you more than replacing one on your own budget). You are to choose which car insurance you need, yet this coverage offers a higher level of protection.
3. Comprehensive Insurance
This coverage type covers the situations that neither of the above-described types does. This may include a theft, weather damage, a vandalism, etc. This insurance type is undoubtedly a great one if you can afford it, though. As a rule, it is quite costly and there is no sense in purchasing it if your car is not an expensive one. Surely you can slightly reduce the cost by installing anti-theft or tracking systems on the car, yet it will still be quite expensive.
The Personal Injury Protection can’t be purchased in every State, yet if it is available in yours, consider purchasing. Which car insurance you buy is up to you, yet this insurance type is the one advised to buy. The PIP pays the medical expense for both you and your passengers regardless who is to blame for the accident.
5. Uninsured Motorist Protection
Beyond any words, it is mandatory in every State for all drivers to have the minimal liability insurance coverage. But, unfortunately, there are still plenty of irresponsible drivers. What should you do if your car was hit by an uninsured or under insured driver? In such a case all the expenses (both medical and car repair) are left on you. Not to appear in such an awful situation, opt for this insurance type.
So, you must choose which car insurance best suits your requirements basing on your budget, the value of your car and what type of driver you are.
CAR INSURANCE INFOGRAPHIC