Getting the right kind of auto insurance policy for the first time can truly be an overwhelming experience for many people out there. To begin with, auto insurance comes in the form of a variety of different types. Some are considered mandatory to purchase while others seem to be optional.
Understanding the different types of auto insurance can not only make your life simpler as a driver but as a citizen in a country where rules and regulations must be abided by.
So to help you out, we’re going in depth into the various types of major auto insurance coverage available today and what exactly they cover. So let’s take a look!
Liability coverage will cover the charges that occur due to an accident that took place due to your negligence. It’s like rescue coverage for incidents where you as a driver are at a fault.
This type of coverage is considered as essential for obtaining by the law so there’s no backing down on its purchase. This form of auto insurance coverage will cover all the necessary costs related to the third party’s injuries, damage of their property or even death.
It is recommended that all vehicle owners purchase a liability coverage premium that is set at a higher rate above the minimum by the state laws. This reduces your chances of billing payments out of your own pocket, giving policyholders to handle it all.
This is the name given to an optional form of coverage that reimburses you regarding any form of damage that may occur to your vehicle, as a result of a collision with some other car or any object. This does not include coverage for mechanical failure or old age wear and tear.
Uninsured Motorist Protection
This form of auto insurance coverage is frequently required by the state. It will reimburse you as a driver when accidents result due to the negligence of an uninsured motorist. This includes the famous hit and run accidents.
Comprehensive auto insurance coverage is considered optional. It works to provide coverage against all forms of theft or damage that result due to an accident, other than that of a collision. This can include fire, vandalism, falling trees and rocks on your vehicle, damage due to poor weather conditions and other similar hazards.
Personal Injury Protection
This type of coverage will provide the user with reimbursement relating to a series of medical expenses for injuries that may occur to you as a driver or other passengers inside your vehicle. This includes coverage for lost wages as well as similar related expenses.