When you start shopping for insurance, it can be a bit confusing, even daunting, because there are so many options. You soon discover that there are actually several types. Below, you will find an easy to understand explanation of each of the major types so you can make a better informed decision to auto insurance quotes.
Liability Insurance
This is the type of you need if you are in an accident that is determined to be entirely your fault, or partially your fault. It covers the cost of repairing the property damage, other than your own car or property, up to a certain maximum limit. When getting this type of coverage remember it also covers medical expenses if anyone was hurt due to your fault up to a certain maximum limit. The limits are always stated clearly in your policy and you should always make sure you know what these limits are. Almost every state requires that you carry a certain amount of liability car insurance. However, many motorists choose to carry more than the minimum liability insurance required by law because you will still be held liable for all damages that exceeds what your policy doesn't cover. If you happen to hit a brand new sports car and the occupant has to undergo extensive surgeries, a long recuperation time missing work, and therapy, this can far exceed your limit on state required minimum liability car insurance.
Collision Insurance
This type of will cover the repairs on your own vehicle or replace your car if it is totaled, defined as the repairs being more expensive than replacing your car. In deciding whether or not to get this type of car insurance, you should carefully consider the market value of your car, not sentimental value. If your car is very valuable, then you most definitely want to carry collision insurance. However, if you car is not very valuable, the cost of the insurance could potentially exceed the value of the car. We have resources to help you save money on car insurance and It's also important to note that if you are still paying on the car, collision insurance is required in almost every case.
Comprehensive Coverage
This type covers damage to your vehicle that does not involve an accident with another. For example, if a cow gets lose out of a pasture and crosses the road and you can't help but hit it and your car is damaged, this is covered by comprehensive insurance. If someone steals or vandalizes your automobile, comprehensive will cover this loss. However, comprehensive insurance is rather expensive. You can reduce the price of it by installing tracking devices and/or anti-theft devices, as this helps law enforcement track down a stolen car. Just like collision insurance, you are almost always required to carry comprehensive insurance if you still paying on the vehicle.
Uninsured and Under-insured Motorist Protection
Even though almost every state requires at least a minimum amount of liability insurance for every motorist, there are still plenty of people who either do not carry any auto insurance, let it expire without realizing it, or they do not carry enough to cover the damages they cause. Uninsured and under-insured motorist protection will cover your damages, up to a certain limit, if you are involved in an accident where it is determined it is the other driver's fault and they are either uninsured or under-insured. Luckily, this is one of the types of insurance that is easily afforded by most people and it can really save you from a financial catastrophe!
One Last Comment
The information above covers only the most basic types of car insurance. However, there are many other types to consider as well. You can consult this website for more information on those.