Which Type of Car Insurance Coverages Suits You Best – Coverage is the most basic service every car insurance company has to offer, but when it comes to buying car insurance do you know what type of car insurance coverages are there? Many people assume by having some kind of coverage they can feel safe about the risk while driving which means they don’t have to worry about anything since the coverage will cover the cost of any car-related occurrences. However this is not true, every coverage is different, each of them has their specific purposes some coverage may suit you well and some don’t. Here are 6 types of car insurance coverages and what they cover.
- Car Liability coverage
Liability coverage is the most important coverage because most states require you to buy this coverage as a minimum requirement to drive legally. Liability coverage can pay for another person’s medical bill and the damage you may cause if you are involved in a car accident. There are 2 types of liability coverage:
- Bodily injury liability coverage (BI)
This coverage can help you to pay another person medical expenses until he can return to his normal life.
- Property damage liability coverage (PD)
This coverage can cover the damage you may caused to someone else’s property while driving.
What liability insurance doesn’t cover?
- It doesn’t cover the damage to your car after an accident.
- It doesn’t cover the medical cost of your injuries after an accident.
How much liability insurance you should buy?
The price of the insurance may vary depending which state you live but most people spend $676 a year or $56 a month, the problem with the state minimum coverage limit is that the price is too low to cover the asset of most motorist, the right price you should spend for this insurance is $100,000 per person and $300,000 per accident.
- Uninsured and underinsured motorist coverage
Uninsured motorist coverage can help you to pay for your own medical expense if you get hit by a driver who doesn’t have insurance, the coverage may also cover if the driver has insurance but his liability limit isn’t enough to cover for your medical expenses. And unlike the liability insurance, only 21 states require you to have this coverage.
What Uninsured and underinsured motorist coverage doesn’t cover?
- It doesn’t cover if the uninsured driver is capable to cover your property damage and medical expenses.
How much Uninsured and underinsured motorist coverage you should buy?
Usually uninsured and underinsured motorist coverage cost half less than liability insurance, but it is important to know how uninsured and underinsured motorist coverage work in your state then you might want to talk to a local agent to determine the limit you should buy.
- Comprehensive coverage
Comprehensive coverage is different than liability coverage because it only covers the damage of your car if it’s stolen or damaged in an incident that’s not collision such as theft, vandalism, fire, natural disaster, a civil disturbance, and falling objects.
What comprehensive coverage doesn’t cover?
- It doesn’t cover the damage to your car and someone else’s vehicle from a collision.
- It doesn’t cover the medical expense after an accident.
How much Comprehensive coverage you should buy?
The best way to buy this coverage is by using your deductible because the higher your deductible, the less you have to pay, try to carry around $500 on the coverage.
- Collision coverage
Collision coverage is a coverage that helps you to repair or replace your car if it’s damaged in an accident with another vehicle or object. The cost of repair may vary, depends on how much value your car has to the marketplace.
What Collision coverage doesn’t cover?
- It doesn’t cover the damage that isn’t caused by collision.
How much Collision coverage you should buy?
Try to consider how much value your car has to the marketplace if you think your car is worth less then you can consider dropping this coverage but if your worth more then you can use the deductible to pay less for this coverage.
- Medical payments coverage
Medical payments coverage can help you or your passengers to pay for the cost associated with the injury which is beyond your financial limit since medical cost can be quite expensive, this coverage may include hospital visits, surgery, X-rays, and nursing service.
What medical payments coverage doesn’t cover?
- It doesn’t cover the injury that is not caused by an accident.
How much medical payments coverage you should buy?
You have to know this coverage is optional, so if you don’t have this insurance you may pay the full price for your medical expenses but if you have this coverage then it is advisable to buy the minimum.
- Personal injury protection or no-fault insurance
Personal injury protection can help you to pay for your and your passenger’s medical expenses if you are injured in a car accident no matter who caused it.
What personal injury protection doesn’t cover?
- It doesn’t cover the loss of your car by theft
- It doesn’t cover the damage you caused to someone else’s property
How much personal injury protection you should buy?
16 States require you to have this coverage so if your state requires it buy the minimum.