Car insurance can be confusing, even for people who have had it for a long time. The most important thing to do before getting car insurance is to understand the different types of coverage available and how much that coverage will cost. Once armed with the correct information, it is much easier to make decisions about auto insurance needs specific to you.
Auto insurance can be broken up into three easy to understand categories: basic coverage, extended coverage, and premium coverage. Understanding these three levels of coverage and what each includes will make any car insurance decision much easier.
Basic coverage usually includes collision coverage, liability coverage, and comprehensive coverage. Collision coverage will pay to repair your car, whether you are at fault in the accident or not. Liability coverage covers the policyholder from the cost of being determined at fault in an accident; it will pay out medical and auto-repair bills, so you are not personally responsible for them. Before getting car insurance, make sure to consider what type of comprehensive coverage you will need. Comprehensive coverage covers an assortment of incidents involving your car, things like theft, hail damage, falling objects, hitting an animal and damage from a natural disaster.
Extended coverage is the next level up after basic coverage. An extended coverage car insurance policy will typically include options like Medical payments coverage, personal injury protection, and underinsured or uninsured motorist coverage. Medical payments coverage will ensure that your personal medical bills are paid, regardless of whether you were at fault in the accident. Personal injury protection is an extension of medical payments coverage which will increase your premiums but expand your medical coverage to include things like physical therapy and lost wages.
Uninsured or underinsured motorist coverage is a part of your policy that will cover an accident with someone who lacks insurance coverage, does not have insurance with a high enough liability policy to cover your expenses, or commits a hit-and-run.
Premium Coverage is auto insurance that comes with the highest premiums but covers almost any unfortunate situation a policyholder might find themselves in. It is the highest tier auto insurance policy available and will therefore come with some hefty premiums. Some examples of these premium coverage options include mechanical breakdown protection, roadside assistance, and rental reimbursement. This is important to consider when getting car insurance.
Mechanical breakdown protection is a premium coverage option that will cover the failure of major vehicle systems. It will only cover sudden malfunctions, so you will not get a pay-out for normal maintenance or basic wear and tear damage. Roadside assistance will send a professional technician to help you with whatever problem your car may be having. Rental reimbursement will cover the cost of any rental car you would need while waiting for your car to be fixed after an accident.
Ask For Advice When Getting Car Insurance
Understanding these basic types of car insurance is critical to making any auto insurance decision. Once you understand the different coverage levels and policy add-ons, you can begin to determine what your needs and desires are when making your car insurance decision.
If you are seeking advice about getting car insurance, give us a call at (618) 779-5808.