Regardless of your feelings about car insurance, it is a necessary evil that all drivers must put up with. In most cases, you must have coverage if you want to drive your car legally, and auto insurance makes it easier to pay for damage done to your car or to another car in an accident. What types of coverage can you buy to protect your vehicle without paying too much?
Basic Liability Coverage Covers the Cost of General Repairs
If you cause damage to another vehicle while driving, your general liability coverage will pay to repair the other person’s car. In the event that you live in a no-fault jurisdiction, it will pay for the damage done to your own car in an accident. Money to pay for medical bills or funeral expenses may also be included in a general liability policy.
Comprehensive Coverage Pays for Damage In Other Scenarios
When a vehicle is damaged in a parking lot, by a fallen tree branch or because someone slashed your tires, comprehensive coverage will pay for the damage. This type of coverage may also pay for damage done by a driver who then leaves the scene of the accident.
Collision Coverage Pays For Your Vehicle If You Cause an Accident
In the event that you were the one responsible for causing an accident, your collision coverage may pay for the damage done to your car. As with most other types of coverage, you may have to pay a deductible, which is the amount that you pay to repair your vehicle before your insurance policy kicks in. If your deductible is $1,000, you would pay the first $1,000 in damages. As a general rule, the lower your deductible, the higher your premium.
Underinsured/Not Insured Coverage Helps When the Other Driver Doesn’t Have Insurance
It is possible that the driver who caused the accident you were involved in doesn’t have enough insurance to cover the damages done to yourself and your car. In some cases, the driver who hit you may not have coverage at all. While you may be able go after this person in court, you can’t obtain money or liquidate assets that he or she doesn’t have. The best way to ensure that you are financially protected is through such a policy.
While no one likes to pay for car insurance, it is something that you need to have at all times. Letting your coverage lapse for even a single day could put you at legal and financial risk. Therefore, make sure that your policy is valid and that it renews automatically. It is also important to remember that you can change your coverage levels or insurance company at any time.