Types of Car Insurance
Did you know that more than a quarter of us will be in a car accident in any given five-year period? If that’s the case, we might as well get ready by making sure we have the right insurance.
Yes, we know that it can be hard to keep track of all the different kinds of car insurance. But don’t be afraid. We’ve made a handy little guide.
If you keep reading, you’ll soon have all the information you need to decide which types of insurance are best for you.
If you have the right kind of liability coverage, your insurance company will pay if you cause an accident and are found to be at fault.
If the world were perfect, every driver would have liability insurance. Everyone would know that if there was an accident, the driver who was at fault would be able to pay for the damage and injuries to the driver who wasn’t at fault.
Types of Car Insurance
If there wasn’t anything like liability insurance, every driver who didn’t do anything wrong would have to pay for what someone else did. If there was no liability coverage, it would be too expensive to own and drive a car.
The state will require drivers to have at least a certain amount of liability insurance. Texas has minimums of $30,000 per person and $60,000 per accident for bodily injury. The least you have to pay per accident for damage to property is $25,000.
But it’s a good idea to get more liability insurance than just the minimum. You should make sure you have enough liability insurance to pay for any damage you do to someone else’s luxury car.
If you cause an accident, you want to make sure the other driver’s car is fixed, but you also want to make sure your own car is fixed. Then you need collision insurance. When you cause an accident, collision insurance can get you back on the road with your current car or a new one.
Types of Car Insurance
If your car is old and hasn’t been driven much, it might not be worth it financially to pay for collision insurance. Having collision insurance is important no matter how old or expensive your car is. However, it’s even more important if your car is newer or worth more. As long as the bank or loan company has a lien on the car, you will have to have collision insurance.
Full coverage insurance
Comprehensive insurance covers a lot of things, as the name suggests. It covers times when your car is damaged by something other than a crash with another car or object.
Complete insurance is also good to have in case your car is stolen or damaged by things like trees and rocks that fall on it. Depending on the policy, full coverage insurance may also pay for damage caused by hail, floods, and fire.
Types of Car Insurance
It also offers some protection from animals and vandalism, like when a stray dog decides your car’s bumper tastes good or when kids in the neighbourhood spray paint the name of their favourite heavy metal band on your hood.
Usually, you have to keep full insurance on your car as long as you still owe the bank or loan company money and don’t have a clear title.
Uninsured Driver Insurance for Damage to Property
After you’ve gotten the insurance coverages that are required by law, you’ll have to choose which of the optional coverages you’d like to have as well. Uninsured driver insurance is one of the most important of these choices.
Not everyone who drives a car has the right kind of insurance. And if this kind of person causes an accident, they are likely to run away, leaving you to fix the damage to your car. Having uninsured driver insurance is helpful in these kinds of situations.
Body Injury Insurance for Uninsured Drivers
A driver without insurance could hit the back of your car, giving you neck and back pain. But what if the driver who was at fault doesn’t have insurance?
If you have uninsured motorist insurance for bodily injury, you could get help paying for the treatments you need to get your neck and back back to being healthy and pain-free.
Underinsured Driver Insurance for Damage to Property
The person who hit your car might have liability insurance that will help pay to fix it, but it might not be enough to cover all the costs. Your car might need expensive parts or work that costs more than the amount of your liability insurance. This is especially likely to happen if you drive a car that is expensive, unique, rare, or has a long history.
If you have underinsured motorist insurance, you can be sure that your policy will cover more of the cost of repairs. That cuts down on any costs you’d have to pay for yourself.
Underinsured Driver Insurance for Bodily Injury
Many drivers save money by getting the least amount of insurance that the law lets them. That’s fine, as long as they don’t hurt someone else. Imagine that you are that person. The insurance coverage of the other driver won’t be enough to pay for your medical bills. With underinsured motorist insurance for bodily injury, you could get help paying for your doctor bills.
Insurance for paying medical bills
Unfortunately, not every accident is just a minor scrape. Sometimes, you need to go to the doctor or hospital. Part of the cost of medical care will be paid for by the medical payments coverage.
Insurance that covers personal injuries
Personal injury protection is similar to medical payments coverage in that it is meant to help you pay for the cost of getting medical care after an accident. If you get hurt and can’t work for a while, it can be very hard on your family. Personal injury protection insurance can help a lot in this situation. This kind of insurance can help pay for a big chunk of your medical bills.
Imagine that you are still making payments on a car loan when an accident totals the car. Since you weren’t to blame for the accident, you get a settlement for the value of your car. But the amount paid to settle the loan is less than what is still owed on it.
The value of most cars goes down every year, which makes it easy for this to happen. But the loan was based on how much the car was worth when it was bought. Gap insurance can help you pay off the remaining loan balance after the settlement.
Insurance for emergency roadside service or towing and labour
It’s nice to know that your insurance will cover the cost of getting your car towed to your favourite mechanic and fixed there.
Rental Reimbursement Insurance
If you don’t want to take Uber every day, you might want to make sure you have rental reimbursement insurance, which can get you behind the wheel of a nice rental car. You’ll be on your own, you won’t have to pay for Uber, and you won’t have to risk your friendships by asking people for rides.
Insurance for old cars
People don’t always want to drive the newest car on the market. Some people can’t help but long for the cars of the past. Classic car insurance is a way for fans and collectors of old cars to make sure their investments are safe.
Different people will have different ideas about what classic, vintage, and antique cars are. No matter what, though, you still want to do everything you can to protect your investment.
Collector cars get special attention and insurance rates, so you should take advantage of this coverage that is made just for you.
Learn about the different kinds of auto insurance
Spending a few minutes learning about the different kinds of car insurance you can get to protect you on the road will make it easier for you to choose an insurance plan. You’ll know why you have to have certain coverages and how they help you.
You’ll also know which coverages are optional and may not fit your needs. In other words, if you know a little bit about car insurance, you’ll be a better shopper. Who could find fault with that?
Do you like to read about tips and suggestions for how to get the most out of driving? If so, you should read some of our other articles about cars and trucks.
Types of Car Insurance.
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