Almost all states across the US require car owners to have a minimum level of insurance coverage. While the more expensive, comprehensive plans are certainly optional, it may be a good idea to get them if you’d like enhanced insurance coverage. Let’s take a look at the various types of insurance coverage and what exactly it pays for.
- Bodily injury liability: This pays for medical expenses that arise as a result of injuries sustained from a car accident that you caused.
- Property damage liability: This pays to repair property that you damaged.
- Uninsured motorist bodily injury/property damage coverage: Your medical costs or property repair costs will be covered if you have an accident with an uninsured driver.
- Underinsured motorist coverage: If you have an accident with a driver who was minimally insured, your plan will cover the resulting expenses from the accident. Keep in mind that your coverage will only kick in once the coverage limits of the underinsured driver have been met.
- Collision coverage: This part of the insurance cover pays for repair expenses that are the result of traffic-related accidents, regardless of who the at-fault driver is.
- Comprehensive coverage: If you have an accident due to an event that was outside your control, like hitting an animal, theft, or weather events, a comprehensive insurance policy will cover the repair costs.
- Medical payments coverage: After an accident, the medical expenses for you and any co-passengers will be covered.
- Personal injury protection insurance: This covers your medical expenses along with compensation for lost wages, funeral costs, child care expenses, etc., regardless of who the at-fault driver was.
- Gap insurance: This insurance plan covers the difference between your vehicle’s actual market value and the amount you owe for your car.
In addition to the above-listed coverage, you can also opt for add-ons or riders at an extra cost. While they increase the cost of your policy, they could come in handy, especially during an emergency. Some of the common add-ons that car owners usually opt for are Rental Reimbursement, Roadside Assistance, New Car Replacement Insurance, Rideshare Insurance, and Full Glass Insurance, among others.
Now that you know the different types of coverage options, make a list of what you require so you can get an insurance plan that suits your needs.