Understanding The Different Types Of Coverage Included In Your Car Insurance Policy
There are a variety of different types of coverage that may be included in your car insurance policy. Understanding the protection that each type of coverage offers will help to ensure you know exactly what situations you are covered for and what situations you are not covered for. Below you can learn more about the different types of coverage that are available to purchase as part of your car insurance policy. If you find that your policy is lacking one or more of these types of coverage, you may want to discuss adding the coverage with your auto insurance agent or broker.
Liability Coverage
All car insurance policies will include liability coverage. This is because liability coverage is required under the law for all vehicle owners. This type of coverage ensures that other drivers are protected if you should ever damage their vehicle or cause them to suffer injuries as a result of an accident. This type of coverage does not extend to your vehicle and will not cover any of your medical expenses after an accident.
Collision Coverage
Collision coverage is a bit like liability coverage in the fact that it provides coverage for both property damage and personal injury. The main difference is that while liability coverage applies to other drivers, collision coverage will apply to you and your vehicle. Collision coverage is considered optional under the law. Consequently, not all car insurance policies will include this type of coverage. However, many people will find that lenders do require them to carry this type of coverage while their vehicle is being financed.
Comprehensive Coverage
Comprehensive coverage offers quite a wide range of protection. For example, damage that is done to your vehicle as a result of severe weather will be covered by this type of car insurance. Comprehensive coverage also offers glass and theft coverage. While this type of coverage is not required by law, many people will find that the protection it provides is well worth the cost of adding this coverage to their car insurance policy.
Uninsured Motorist Coverage And Underinsured Motorist Coverage
If you are hit by another driver, that driver's liability insurance should take care of paying for any damage to your vehicle and any medical expenses that you incur. Unfortunately, this simply is not possible if the other driver either does not have enough coverage to cover the costs in full or if they do not have any insurance at all. In this situation, uninsured motorist coverage and underinsured motorist coverage will take care of covering any expenses that are not covered by the other driver's insurance coverage. While this type of coverage is often optional, there are a few states that do require you to purchase this type of coverage.
Contact an agent to learn more about your car insurance.