How To Know What Auto Insurance Coverage Is Right For You
When shopping around for car insurance many people are confronted with the question. “What kind of coverage do you want?” This can leave some shoppers in a state of vulnerability because in actuallity they have no idea what coverages they want let alone what they really need. It is of utmost importance when you are searching for the right type of policy that you gain at least a basic knowledge of what your options are. Educating yourself will prove to be valubale when it comes time to make your purchase. It can save you money as you will not purchase coverage you do not need and it can save you from having to pay out of pocket in the case of an accident because more than likely you will be covered properly.
Types Of Car Insurance Coverage
There are many different types of coverages available when it comes to auto insurance. Here is a list of the most common options available.
Bodily Injury is very popular because it is required in many different states. The purpose of this coverage is to compensate for any injuries to passengers in another vehicle if you are the at fault party. There usually is a set limit of compensation on a per person basis as well as on a per accident basis as well.
Property Damage, commonly refered to as PD is also required in most states. This coverage is used to pay the cost to repair any damages to another persons property such as their vehicle, fence, house, wall etc. if you are found at fault in the accident. In most cases there is a set limit per accident that the policy will cover up to that is determined at the time you purchase your policy.
Uninsured motorist is very similar to the standard bodily injury and property damage coverages mentioned above. The main difference is that it actually covers you and your passengers for bodily injury and your vehicle for property damage if you are involved in an accident with someone who does not have auto insurance. With more and more people driving without insurance due to the economy this type of protection should definitely be considered…
Medical payments or “med pay” as it is sometimes refered to, is available on almost all types of car insurance policies. It covers the cost of medical payments for you and your passengers if injured in an accident. It also can cover medical expenses if you or a member of your family is injured in another persons vehicle.
Comprehensive also known as “comp” and “OTC” (other than collision) covers against just that. Anything that can happen to your vehicle other than a collision, such as theft, vandalism or wheather related damages. This coverage will have a set deductible that you will be responsible for paying before the insurance company pays the balance.
Collision coverage on a car insurance policy covers any damage to your vehicle if you are at fault in an accident. Similarly to Comprehensive protection there is usually a predetermined deductible that must be payed by the insured before the claims department pays for any repairs. If another party causes the accident you would have to file a claim with their insurer and would not have to pay a deductible.
Towing and labor coverage provides reimbursement for costs that can occur if your vehicle is needs to be towed or repaired due to mechanical failure. It also comes into play if your car or truck gets stuck and needs to be pulled out of a tough spot. It usually will pay out up to a specified limit. Check your policy or ask you agent for specifics as many companies have different options for this type of protection.
If you have ever been involved in an auto accident and needed your car repaired you will difinetly appreciate this coverage. Rental reimbursement covers the cost to rent another car while your vehicle is being repaired. It is usally covered up to a certain limit per day. You should check your auto insurance policy or check with your agent to see what the alotment is per day before renting a vehicle.