The Six Types of Car Insurance Coverage

Are you looking for car insurance? Are you confused by conflicting information from different sources about the complicated auto insurance industry? Since it is a legal requirement and depending on your circumstances, you can choose different car insurance types. Your budget also determines a lot when buying car insurance.

There are two general types of car insurance. First is third-party coverage. It covers liabilities caused to another person or property damaged, destroyed or both. Then comprehensive and collision. It is also called first-party coverage. It ensures your car and the passengers. However, classic cars such as convertibles, among others, need classic car insurance.

Check if you can afford insurance. To do so, make use of anonymous auto insurance quotes online because you can check the estimated cost without sharing your details or committing to a company. It also makes you knowledgeable about good and bad credit insurance companies if you require financing. Additionally, it can allow you to buy insurance directly instead of through agents.

The best time to get car insurance quotes depends on your situation as an individual. It also depends on your credit score or rating on a company you have used before.

Most people know that having good car insurance coverage is a vital part of staying safe on the road. But before you make a decision on those car insurance estimates you’ve been considering, it is important to make sure you know what you are paying for. Below is a brief explanation of the six types of car insurance coverage that typically comprise car insurance prices. Do you have the right type of insurance in your future plan?

Bodily Injury Liability Coverage
This covers you against any injury or death claims made against you. It also covers legal costs if your car injures or kills someone.

Property Damage Liability Coverage
Similar to bodily injury liability, this covers any claims for property damage caused by an accident you are in. This type of coverage is required in all but three states because it protects the other party.

Medical Payments
This coverage pays for injuries experienced by occupants of your car, including your own. In some states, this is optional, while those with “no fault” policies use personal injury protection coverage instead of medical payment coverage as part of a basic insurance plan.

Uninsured Motorist Protection
This covers any injuries experienced by you or other occupants of your car caused by uninsured drivers or a hit-and-run accident. Under-insured coverage is also available to cover claims involving those with less-than-adequate insurance.

Collision Coverage
This covers damage to your car up to its value, as determined by the Kelley Blue Book. This type of coverage carries a deductible, which can be beneficial or detrimental, as lower deductibles mean higher premiums. Collision coverage is not legally required, but lenders and leasing companies typically include it as a stipulation.

Comprehensive Coverage
Also known as physical damage coverage, this protects your car from damage caused by theft, vandalism, fire, wind, flood, and other problems not caused by accidents. Like collision coverage, this type usually involves a deductible.

These six types of car insurance coverage are a major factor used to determine car insurance estimates. Every type will typically not be included in an insurance plan, but some may be necessary given your unique background and situation. What types of insurance do you need in your plan? Links like this.