Just being able to forgo the cost of a minor repair can make having auto-insurance useful to have. When you factor in potential medical bills, and major repair jobs which you might incur after an accident, having it seems downright sensible. However, there are numerous options when it comes to car insurance. Choosing between them can be tough to decide, especially when you factor in your budget, your car type and your own personal needs.
Liability Insurance
This usually comes standard, and many areas and loan companies require you to get this. It covers you, should you be in a vehicle collision and you are the party at fault. It will cover any damage sustained to property during the crash, including vehicles and structures. It will also pay for any medical expenses. If you can afford it, it is wise to make a higher payment than the minimum. This is because you will be responsible for any costs exceeding your coverage's upper limit. You don't want to have to pay out your own bank account, for a costly collision.
Collision Insurance
Unlike liability, this covers you and your own vehicle in the aftermath of an accident. It ensures you don't have to pay for repairs, or buy a new car, should it be totalled. You may not get what a new motor vehicle is worth, but you will receive what you paid for it. This insurance is usually not necessary for older cars, especially if they are nearing the end of their lifespan. It is however, very useful if you have a new and/or expensive model.
Comprehensive Insurance
This type of insurance covers the same as liability and collision. However, it also covers you if something other than an accident happens to your vehicle. This could include weather damage, theft, vandalism, animal collisions and other acts of nature. This type of insurance is most recommended for mid-range to expensive cars, though it may not be necessary for a vehicle which is easy to replace. It can be pricey, but it's great to have.
Uninsured Motorist Protection
If you are in an accident with a person who doesn't have insurance of their own - or if you're involved in a hit-and-run - this variety ensures that you won't be stuck with all the expenses. This can be especially useful if the accident wasn't your fault.
Medical/Personal Injury Protection
Hospital bills can be astronomically expensive. If you wish to cover these costs after an accident, this will cover you no matter who is at fault in an accident. It also stretches to include any passengers in your car at the time. If you have a decent health insurance, this type may not be all that useful to your needs. It won't cover as much as a health insurance policy, and should be your second choice.
Gap Insurance
This choice is great for those still having to make payments on their car. It's aimed at individuals who owe money and need the vehicle paid off if it's damaged. It is great if you owe more than it's worth today.
Laura has written a number of diverse articles covering a range of topics around cars, their components and their issues and loves to give advice to new and advanced motorists alike. Pay as you drive insurance is but one aspect of being a sensible vehicle owner, and choosing the right one will be greatly advantageous to you.
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