Purchasing insurance can be tricky. You want to be as protected as possible, but at the same time, you do not want to regret throwing money away on coverage you never use. You can end up going in circles, unable to reach a conclusion.
To help make the decision easier for you, here’s a quick primer on four levels of auto insurance.
Liability
Liability coverage is the basic level of coverage required by law in most areas of the United States. With this level of auto insurance, you are covered should you be in an accident that is determined to be your fault. This coverage will cover property repairs and medical bills for injures caused by the accident. Liability insurance comes in different levels based on how much coverage you want to have. Given the high costs of medical treatment, it is a good idea to opt for coverage that is higher than the amount mandated by law.
Collision
Collision coverage is an addition to your liability coverage. In addition to a policy covering liability, you get this coverage to pay for not just repairs, but to receive the value of your car should it be totaled in an accident. In general, this level of insurance is recommended for those with newer or high-value vehicles. If your car is old and not worth much, you may find you do not need collision coverage.
Comprehensive
If you want to be well covered, you could elect comprehensive coverage. With this form of auto insurance, you are covered under a wide range of circumstances. For example, collision coverage may cover you should you get into an accident with another car, but what about hitting a large animal, such as a deer? Most collision policies will not cover this. Then there are other events, such as theft and vandalism, which you might want protection against, both of which may be covered under a comprehensive policy.
Uninsured and underinsured motorists
When you are in an accident, the party at fault is the one who is meant to pay the costs associated with the accident. However, sometimes the other driver is not insured, or their coverage is not sufficient to cover the bills. In this case, if you have uninsured and underinsured motorist coverage, you will still be protected. With this coverage, your insurance company picks up the slack and ensures you are able to get the help you need without having to wait until you are able to take the other driver to court to receive a settlement.
If you are uncertain about what types of coverage are best for you, speak with an experienced insurance agent, such as John B. Wright Insurance. They will be able to help you weigh the pros and cons so you can find the perfect option for your circumstances.
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