Posted on: 18 August 2022Share
The law requires you to carry insurance coverage on your vehicle. If your vehicle is being financed, your lender may also require you to maintain certain types of coverage. But how do you know which coverage options you really need and which you can safely decline? Taking the time to learn more about the different options that are available to you can help you to make this important decision.
This is the type of car insurance coverage that the law requires you to have. The purpose of this type of car coverage policy is to protect the other drivers on the road in case your actions cause an accident. This type of insurance does not cover damage to your own vehicle or any medical bills you may have due to injuries suffered in an accident.
Collision And Comprehensive Coverage
Many lenders will require you to carry comprehensive and collision coverage if your vehicle is currently being leased or if you have an active auto loan. Even if you are not required to maintain this type of coverage, you could still benefit from choosing to purchase a policy that includes this coverage. This is because while liability coverage protects other drivers, collision and comprehensive coverage protects you if your vehicle is damaged in an accident that you cause. This type of coverage can also help to pay for repairs to your vehicle if it is damaged as the result of extreme weather or a natural disaster. Generally speaking, the more your vehicle is worth, the more likely it is that you will benefit from this type of coverage. This is because a collision and comprehensive car coverage policy can only pay out a settlement worth as much as your vehicle.
Uninsured And Underinsured Motorist Coverage
While every driver you encounter on the road should have at least a minimal amount of insurance, the fact is that there are many drivers out there that choose to disobey the laws which require them to purchase insurance coverage. If your vehicle is ever hit by one of these drivers, you could find yourself paying for repairs out of your own pocket unless you choose to purchase a policy that includes uninsured motorist coverage. You could also find yourself paying for some of your own repairs if the driver who hits you has an insurance policy that does not offer enough coverage to fully cover the value of your vehicle. That is why it is also a good idea to include underinsured motorist coverage in your auto insurance policy.
For more information on car coverage policies, contact a company like Bishop Insurance Agency.