Insurance is very confusing and tricky. There is so much legal information and fine print it can sometimes make your head spin. Before you decide on a policy, it's best to make sure you fully understand the different types of auto insurance.
Comprehensive coverage is a great type of insurance to have if you can afford it. It's not a necessity, but it's definitely helpful. Comprehensive coverage takes care of the type of damage that occurs outside of an auto accident, such as hitting an animal, weather damage, or if your car is stolen.
This type of insurance is usually required under state law and covers the cost of property damage and medical bills from injuries if you are found to be at fault in an auto accident. It's best to go above the minimum of whatever your state requires because if the damages are higher than the minimum of what your insurance has to pay, then you will be stuck with the rest of the expenses.
Protection from Uninsured Motorists
It is a good idea to have this added onto your insurance as it covers you if you get into an auto accident with someone who is not insured. You won't get payment in this type of situation if the other person is not covered. It is usually fairly expensive to add on and offers you a lot of protection.
Collision coverage pays for the cost to have your vehicle repaired. In the event that your car is totaled, it will pay for the value of your vehicle. Collision is not always beneficial. For example, if you have an older vehicle, then it may not be a good idea to have collision coverage. You will want to look at the value of the vehicle before you decide.
Personal Injury Protection
Something you should always purchase is personal injury protection if it is available in your state. A vehicle can always be replaced, but when it comes to your health, you should make sure you have the best coverage possible. Personal injury protection covers your medical costs in the event that you are injured, no matter who is found to be at fault. It also covers your other passengers.
As mentioned previously, auto insurance is very confusing. You don't want to have too much insurance and pay more than you need to. On the other hand, you definitely don't want to have too little insurance and be stuck in an expensive situation. Hopefully, this guide will help you understand the different types of auto insurance, so you can make the best decision for your vehicle and situation.