Auto insurance coverage is a pre-requisite if you want to drive a car in your state. Depending on the minimum coverage requirements and the associated laws, you need to get your car insured. Auto insurance is necessary to protect your car and your family in case of an accident. Therefore, it is essential that you make an educated decision regarding the amount of coverage required.
There are different types of coverage provided under auto insurance. These include:
Collision coverage: Provides coverage for damage occurred to your vehicle in an accident
Comprehensive coverage: Get protection for car damages due to happenings other than an accident.
Liability coverage: Get financial protection for damage done to another driver or pedestrian while driving your car. You also get property damage liability coverage related to the harm done to other person’s property such as vehicle or home etc.
Personal injury protection: Get medical expenses if you or any of your co-passengers get hurt in an accident. You also get protection for any income lost due to the accident.
Uninsured and underinsured motorist: Provides coverage for medical expenses and repair bills if an accident is caused by the other party who is not insured/adequately insured.
What does comprehensive auto insurance cover?
Get coverage for damage due to natural incidents: A comprehensive auto insurance cover can help in protecting your car against damages that are not associated with collision. You get coverage for damage occurred to your car due to fire, theft, falling objects, vandalism, natural disasters or any other events mentioned in the auto insurance policy.
Get claim for your fault: Under comprehensive coverage, you can get protection from your insurer for accidents occurred due to your fault. Apart from this, you also get coverage even if your fault is not proven. Without comprehensive auto insurance cover, you will have to shell out a large amount of money to get your car repaired.
Total cost of coverage: The amount of money you need to spend for comprehensive coverage depends majorly on the deductible amount. A higher deductible will lower your overall premium but it also means that you will have to pay for any of the damages that occur before the commencement of the insurance policy. The type and model of the car also affects the comprehensive coverage rate.
Why do you need comprehensive coverage?
In certain instances, your car lender or lease holder will make it compulsory for you to buy comprehensive coverage. Therefore, you need to check with your loan institution to know the details. If you have an old car that you can afford to repair and replace, it is not essential to buy comprehensive coverage. This type of coverage is also optional in case you have paid back your loan.