🚗 What kind of coverage do I need for my car insurance?

The Different Types of Options for Car Insurance

You've finally saved up enough money to buy your dream car. Congrats! But now it's time to think about insurance. In order to drive your new car off the lot, you're going to need to get covered. While that may seem like a daunting task, we're here to help. This blog post will give you a crash course in the different types of options for car insurance so that you can make the best decision for you and your new wheels.

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Liability Coverage

Bodily Injury

Bodily injury covers  injuries caused by you while you are driving. If you are found at fault for an accident, your liability coverage will pay for the ambulance and any medical bills the other drivers (or pedestrians) incur. Most states have minimum requirements for liability coverage, so be sure to check with your state's insurance department before buying a policy.

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Property Damage

Property damage covers anther person's vehicle or personal property if damaged. This can include if you hit a house, fence, telephone pole, etc.

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Collision Coverage

Collision coverage pays for damage caused to your car in an accident, regardless of who is at fault. So if you total your new car in a fender bender, collision coverage will reimburse you for the cost of repairs (minus your deductible). Even if your car is paid off, it might be a good benefit to have collision coverage. In the event of a hit and run accident, you would need collision coverage on your vehicle for your insurance company to pay you for any damages. This is usually required if you have a loan on your vehicle.

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Comprehensive Coverage

Comprehensive coverage (sometimes referred to as 'other than collision') is similar to collision coverage in that it reimburses you for damage caused to your vehicle. However, comprehensive coverage goes one step further and also covers damage caused by events that are out of your control, such as theft, vandalism, or natural disasters. If you live in an area prone to severe weather, comprehensive coverage is definitely something to consider adding to your policy. This is usually required if you have a loan on your vehicle.

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Uninsured/Underinsured Motorist Coverage

This type of coverage protects you if you're in an accident with a driver who doesn't have insurance or doesn't have enough insurance to cover the damages they've caused. Uninsured motorist bodily injury (UMBI) covers any injuries sustained by you or your passengers during the accident and underinsured motorist bodily injury (UIMBI) work similarly but can kick in when the other driver has insufficient insurance coverage.      

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Medical Payments Coverage

Medical payments coverage helps pay for any medical expenses incurred by you or your passengers after an accident, regardless of who is at fault. It might be a good idea to add it to your policy since it can help cover things like ambulance rides and hospital stays—things that can get expensive quickly if you have a high deductible on your health insurance plan.

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There are a lot of factors to consider when purchasing car insurance. The most important thing is to make sure that you are adequately covered in case of an accident—after all, accidents happen when we least expect them! We hope this overview has given you a better understanding of the different types of car insurance plans so that you can make the best decision for yourself and your family. Safe driving!

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