For all drivers, there are numerous types of auto insurance available. With so many insurance companies to choose from, as well as coverage options, it can be difficult to choose which policy may be the most beneficial. If you’re looking to compare diverse car insurance options for the best coverage and financial peace of mind, there are a few ways to approach those policy options. Here, we will take a brief look at the differences between the four most popular car insurance options, and which benefits may be best for you.
Regardless of your driving record, all drivers are required to have liability coverage. This is the most basic form of car insurance. Since liability coverage is mandatory in most states, drivers are legally required to have the minimum coverage. Although different auto insurers offer options as far as premiums, add-on benefits, and deductibles, there are two general forms of liability coverage to choose from: bodily injury liability and property damage coverage. When it comes to bodily injury liability coverage, this policy is specifically geared towards any medical expenses for which you, as the driver, are responsible. Likewise, a property damage liability policy helps you pay for any expenses accrued if you’ve damaged another person’s automobile or personal property.
This is the most common minimum coverage a driver is required to have, and drivers must have proof of the policy in case of an accident. It pays to shop around for the best average rate and, hopefully, lowest deductibles, premiums, and overall monthly fee. Before purchasing a policy, consider asking any reputable auto insurer for a free car insurance quote in order to conduct your due diligence.
While liability coverage is mandatory, there are two other policies that are also popular. The first is comprehensive car insurance, which has many benefits. No matter your credit history or driving record, situations can occur that damage your vehicle other than a collision. With comprehensive insurance, a driver is covered for almost all damages that can occur that are not related to a traffic collision. A few examples include vandalism, theft, and diverse forms of natural disasters (such as fire, flooding, hurricanes, and even rocks shattering your windshield). A comprehensive insurance plan helps all of these possibilities. Depending upon the policy, if you need car repair or even a temporary rental vehicle, this policy can be a life-saver.
Traffic Collision Coverage
Of the two most popular forms of optional auto insurance coverage, collision coverage is a perfect complement to a comprehensive plan. With a collision policy, a driver involved in an accident with another vehicle (or an object that damages the car), this policy helps pay for the repairs.
Although collision coverage is typically an optional secondary policy, there are some car dealerships that require it for all drivers leasing a vehicle. Even if it’s optional, however, collision coverage is a solid idea to have along with your comprehensive plan. Consider asking your insurance company for a free car insurance quote that could pair collision coverage with comprehensive coverage for a discount insurance plan bundle or a lower car insurance rate.
Personal Injury Coverage
Although personal injury coverage is only offered by insurance companies in certain states, it’s a good policy to consider if available. Due to the fact that mandatory liability policies only help pay for the other driver’s potential medical expenses, and both the collision and comprehensive plans are geared towards the automobile itself, this is the only major option for your own medical needs. As far as auto insurance policies go, a personal injury plan can be a major financial benefit for numerous reasons. Not only can medical expenses be high, but serous injuries could keep a driver from going back to work for a long period of time. A personal injury policy solves those problems, as well as offers peace of mind to all parties involved.