When shopping for auto insurance it is quite common for people to not look any further than the amount of the monthly premium. After all, who doesn't want low-cost auto insurance? The problem with this approach is that simply buying the most affordable policy could leave you without the coverage that you really need in the event of an accident. This is why it is so important that you not only consider the price of each policy but also the coverage options that each policy includes as well. Continue reading to learn more about some of the most common coverage options so that you can select a policy that really meets the standard of coverage that you need.
Collision coverage is an optional type of auto insurance coverage for most people. However, individuals with an active auto loan may find that their lender mandates that they purchase this type of coverage for the life of their loan.
Collision insurance provides coverage for damage to your vehicle if you are found to have fault in causing an accident. If your vehicle can be repaired for a reasonable price, your collision insurance will pay for those repairs minus any deductible associated with your policy. However, if the damage to your vehicle is too extensive, the insurance company will declare it a total loss and pay you for the current value of your vehicle rather than paying to repair it.
Not all auto-related losses will be the result of an accident. For example, you could find yourself facing out-of-pocket expenses if your vehicle is struck by hail or is damaged by falling tree branches in a serious storm. If you carry comprehensive auto insurance coverage, this type of damage to your vehicle will be covered minus your deductible. Comprehensive coverage also provides coverage for damage to your auto glass as a result of road hazards, as well as providing coverage if your vehicle is stolen.
Uninsured Motorist Coverage
Even though the law states that all drivers must carry auto insurance, there are still far too many drivers on the road that do not have active insurance policies. If your vehicle is struck by a driver without auto insurance, you can file a claim against your own insurance policy to cover the damage provided you have chosen a policy that includes uninsured motorist coverage. Without this type of coverage, your only option will be to try and recover damages from the other driver either directly or through the small claims court process.
Contact an insurance company to learn more about auto insurance policies.
When you start thinking about getting insurance, it can be overwhelming to hear the advice from family and friends. While some people might encourage you to stockpile money and insure yourself, others might warn about the expense of paying for car repairs or a stay in the hospital. However, even the most conservative financial experts talk about the importance of having sound insurance. Because it can be difficult to find the right policies, I decided to create a website completely dedicated to providing free information about insurance. Every situation is different, but if you are like most people, you will need a decent homeowners, medical, auto, and life insurance policy to protect you from unforeseen circumstances.