If you want to drive a car, you’re going to need more than a license to do so. You’ll also need a car insurance policy. It is mandated by the law. However, despite the fact all drivers need car insurance, not everyone understands what is actually covered by the coverage. What is covered depends on the policy in question. Below are the most common kinds of car insurance coverage you should know about.
Liability Coverage
One kind of coverage you should certainly want to have in a car insurance policy is liability coverage. If you are in an accident, this coverage should help pay for the other driver’s expenses. This kind of coverage is required in almost every state in the country.
Comprehensive Coverage
In certain cases, you’ll need car insurance for incidents apart from an auto accident. This is what comprehensive coverage is designed for. It will help protect you from losses originating from things like car theft, fire, natural disasters, vandalism, acts of God, and more. If something were to happen like a rock falling from a cliff side and landing on your car, this kind of coverage should help you pay for repairs.
Collision Coverage
This pays for damage done to your vehicle in an accident. With collision coverage, it doesn’t matter who causes the accident. However, not all states require this kind of coverage for every car. While it may be required for rentals, certain car insurance policies may not actually include it. Contact your auto insurance agency to make sure you have this kind of coverage.
Under-Insured Driver Coverage
One unfortunate fact is that people drive without insurance even if it’s against the law. If you are injured in an accident caused by another driver who did not have insurance or enough insurance to pay for your injuries, you will still be covered by your insurance. This may also include hit and run drivers that you never discover the identity of.
Bodily Injury Liability Coverage
In other cases, you may end up injuring someone else in an auto accident. If this is the case, those medical bills can be paid for with bodily injury liability coverage. Considering how expensive medical bills can be, this kind of coverage is a must.
Overall, people have car insurance for very good reasons. It can pay for many things such as medical bills, damage to your vehicle, damage to other people’s property, and much more. Make sure you have an adequate level of coverage to protect yourself no matter what happens on the road.
