Even for those with a collection of cars, getting the right insurance cover can be tasking, requiring extensive research and skill. When purchasing car insurance, you need to understand that your policy will be a combination of several coverages. Therefore, it is crucial that you carefully analyze the different options and get a cover that works for you. It will also significantly lower your insurance costs in the long run. But to get down to this, you need to understand the different types of insurance and what they cover.
Here are the six most common automotive insurance covers;
Collision covers are usually optional in all states. However, lending and leasing companies often require them to cover their cars during collisions. In the case your vehicle collides with another car, this type of insurance pays for your car’s repair regardless of who was at fault. However, it is important to note that the amount you will receive cannot exceed your automotive’s actual value. Thus, if your car’s repair costs exceed its fair value, the insurer will pay you the equivalent to facilitate the purchase of a new car.
Like collision covers, comprehensive insurance is also optional in most states. As a first-party cover, it caters to non-accidental damage. Therefore, this cover will pick up where collision covers slack, catering for damage caused by other factors such as fire, theft, weather, animals, vandalism, etc.
There are two main categories of medical coverage: Personal Injury Protection (PIP) and Medical Payments (MedPay). PIP is a no-fault cover that will cover medical treatment and other losses related to injuries incurred during an accident, including loss of wages. MedPay, on the other hand, is quite limited. It only caters to the medical expenses of the driver and passengers, regardless of who was at fault.
Liability coverage is mandatory in almost all states. Drivers must have liability covers to protect other road users. In the case of an accident, this policy will cater for the damage or death and injuries that you cause to other people.
Driving without this coverage is extremely risky, even in states where it is not mandatory. Besides, you would be forced to pay for injuries, death, and damages out of pocket. This cover is vital; hence, you need to set higher limits even though most states’ minimum limits are relatively low. Higher limits will come in handy in severe accidents with serious damages, injuries, or death.
Uninsured/Underinsured Motorist Insurance (UM/UIM)
Although driving uninsured is unlawful and subject to legal penalties in all states, this does not stop some motorists from breaking the law. The uninsured/underinsured motorist coverage will protect you if you get into an accident with a motorist who is either uninsured or underinsured; hence, they cannot cover your expenses. Depending on the insurer, this coverage will also protect you from hit and run situations.
Imagine running on a nail in the middle of nowhere and getting stuck with a flat tire. This can be a nightmare, especially if there are no dealerships nearby. Progressive roadside assistance covers to protect you from such roadside side events. Once you have a progressive roadside assistance cover, you quickly get services such as towing, locksmith, winching, battery jump-starting, on-site mechanical repairs, and locksmith services.
After you have understood the dynamics of the different types of insurance covers, you need to strike a comfortable balance between as much coverage as you can affordably get. You do not have to spend so much, but setting higher limits is worth it since it will protect you from losing your valuable assets.
Produced in association with Craig Lebrau