Protect yourself and your passengers with car insurance that meets your state’s requirements. Many insurers offer discounts and coverage options. Factors that influence your rate include the type and age of the vehicle, safety features, where it’s garaged, driving history, at-fault accidents, traffic violations, credit and more.
Liability coverage pays for damage to third parties. Other important coverages include uninsured/underinsured motorist and comprehensive coverage. Check out more at Leading Insurance Outsourcing Company.
Types of coverage
A car insurance policy consists of several coverage types. Each type has its own premium and deductible. The deductible is what you agree to pay out of pocket for each claim, essentially sharing a small part of the financial risk with your insurer.
Bodily injury liability, property damage liability and uninsured/underinsured motorist coverage are the required minimum coverages in most states. Medical payments or personal injury protection (PIP) may also be included.
Collision and comprehensive coverage are optional, but most lenders require you to carry these if your vehicle is financed or leased. Roadside assistance is another optional coverage that provides towing and other services if your car breaks down.
Liability coverage
Liability coverage pays for other people’s medical bills and property damage caused by an accident you cause. It is required by most states and may be a requirement for drivers who lease or finance their cars.
Property damage liability also helps pay for damages you cause to non-owned vehicles like fences, mailboxes or buildings. It is recommended that you consider higher than minimum liability limits to protect yourself from expensive out-of-pocket costs in the event of a serious accident.
Uninsured/underinsured motorist coverage
With one in eight drivers uninsured1, it’s important to have a policy that includes uninsured/underinsured motorist coverage. This reimburses you, your family members and/or designated drivers if injured by an uninsured or hit-and-run driver.
This car insurance coverage is sometimes paired with collision and comprehensive, which helps pay to repair your vehicle after a crash. It also covers vandalism, certain weather events and accidents involving animals. It may be required by your lender if you finance or lease your vehicle.
Collision coverage
Collision coverage, sometimes called full coverage, helps pay to repair your car if it’s damaged in an accident with another vehicle or stationary object like a fence, tree or guardrail. This is contrasted with comprehensive coverage, which pays out for events that are typically out of a driver’s control such as damage from a spooked deer or a hailstorm.
Like liability coverage, collision typically carries a deductible that you’ll have to pay out-of-pocket before the insurance company starts paying on a claim. Some companies offer disappearing deductibles, which reduce the amount of your deductible by $100 each year you go without filing a claim.
Comprehensive coverage
This type of coverage helps pay for damage to your car that is not caused by a collision. It may cover losses from theft, natural disasters, and contact with animals, as well as broken glass (like a shattered windshield). Comprehensive insurance typically has a deductible that you will need to pay before your insurer starts paying for a claim.
Comprehensive auto insurance is usually worth the cost if you drive a valuable vehicle or are unwilling to risk paying for repairs out of pocket. Those who lease or finance their vehicles should also consider this type of coverage. This is because lienholders often require it along with collision coverage to protect their investment.
Additional coverages
There are several additional coverages you can add to your car insurance policy to give you added peace of mind. Some of these include rental reimbursement, towing coverage and full glass coverage.
Many people choose to buy higher liability limits than the state minimum, along with comprehensive and collision coverages. Other optional coverages include gap insurance (loan/lease payoff), roadside assistance and supplemental accident and health coverage. Additional information about car insurance coverages is available on the Declarations Page of your policy. This includes the full legal name of the insurance company, your policy number, effective and expiration dates, and the types and amounts of coverages you have purchased.