Car insurance is a must-have coverage for every car owner. In most states, all owners must carry minimum liability insurance to be able to drive on public roads. Your car insurance covers your vehicle for loss and damage and protects you against financial liabilities in case of an accident.
Car insurance policies include different types of coverage. Each coverage has its own unique set of benefits and limitations. This blog discusses the six most common types of car insurance policy coverage that you may consider buying for enhanced car safety and finances.
Liability insurance covers injuries and damages to other people and their property if you are at fault in an accident. It covers the cost of repairs or medical bills for the other party involved in the accident. Liability insurance does not cover damages to your vehicle or your medical expenses. This coverage is mandatory in most states and is required by law.
Collision insurance covers the cost of repairing or replacing your vehicle if it is damaged in a collision with another car or object or involved in a single-car rollover. It covers the expenses regardless of who is at fault in an accident that must happen while the car is moving. It pays the actual cash value of your car if it is totaled and needs to be replaced.
Comprehensive insurance covers damages to your vehicle that are not caused by a collision with another car or object. It covers damages caused by theft, vandalism, natural disasters, and other covered perils such as animals and falling trees. Comprehensive insurance is optional, but it is recommended for drivers living in areas with high rates of theft or vandalism, or other factors that may cause damage to their car.
Personal Injury Protection (PIP) coverage covers the medical expenses of you and your passengers in case of an accident, regardless of who is at fault. PIP coverage may also cover lost wages and funeral-related expenses. While in some states, you are required to have PIP coverage, in others, the coverage may be available, but it is optional.
Uninsured/Underinsured Motorist Coverage covers you in an accident with a driver who does not have insurance or does not have sufficient coverage to pay for the damages. Besides medical expenses, it also covers lost wages, pain and suffering compensation, and funeral expenses.
Gap Insurance Coverage covers the difference between the actual cash value of your car and the amount you owe on your car loan. If your car is totaled in an accident and the real cash value is less than what you owe on your car loan, the gap insurance coverage will cover the difference. Gap insurance coverage protects drivers with a car loan or lease from having to pay the balance amount from their pockets.
As a car owner, it is important to choose the right type of auto insurance coverage that suits your needs and budget. At Scavone Insurance Agency Center LLC, we can help you get insurance that ensures maximum protection for your car. For more information, contact us today.
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