Many younger Americans are optimistic about their driving skills and are sure they won’t need insurance. While car insurance is often seen as an unnecessary expenditure, in many states it is legally required. As the name suggests, accidents occur without notice and the average collision claim could have you paying in excess of $3000 from your pocket. Read on to understand how you can benefit from the different car insurance options available.
Collision Coverage
A good bet to safeguard all new cars, this insurance covers you in case you are in a collision. If your car is totaled, and repair costs are excessively high, your insurer could cover the entire cost of the car.
Uninsured Motorist Coverage
If you are hit by an uninsured driver or involved in a hit-and-run, costs involved could lead to a financial burden. Mandatory in some states, this uninsured motorist coverage pays for repairs to your car and medical costs for you and passengers in your car.
Bodily Injury Liability Coverage
While being mandatory in most states bodily injury coverage aims to cover accidents that cause injury to others. The insurer covers you, pays out costs incurred by your passengers, occupants of other cars involved, and even pedestrians. Included in this coverage are payments for medical treatments, legal fees, pain-and-suffering costs, and even funeral expenses.
Property Damage Liability Coverage
If you are insured under this coverage plan, the insurer will pay for damage to property due to accidents caused by you. Property damage liability is mandatory in several states and the minimum coverage requirement varies from state to state.
Comprehensive Coverage
As the name suggests, comprehensive coverage includes an array of damages to your car not necessarily by a collision. Often required by lenders if you still owe money on an auto loan, this coverage keeps you protected from natural disasters, fire, theft, damage caused by animals, and vandalism to name a few.
Once you have determined what kinds of coverage are legally required by your state, compare car insurance plans available by doing some research. Finding the coverage that suits you best doesn’t have to be costly but having a good plan can help you stay away from heavy debt in the future.