Car repairs, no matter how big or small, are very costly. Having a comprehensive auto insurance policy can reduce or even cover the entire cost of car repairs under many circumstances. There are a variety of coverages available and knowing the different types will make choosing your auto insurance coverage a little easier.
Liability Insurance
There are some states that require their automobile owners to carry auto insurance, most especially liability insurance. This type of insurance can cover the cost of having any damaged property repaired including medical bills if the accident is your fault. If there is a minimum requirement for a liability insurance coverage, it is best that you go beyond it because if you are involved in an accident, you have to cover the claims that can exceed your upper limit and this is a risk you do not want to take. The bottom line is the liability insurance you take out will depend on the number of assets you have to protect because you have to have higher levels of coverage in case of emergencies.
Collision Insurance
When you only have a liability insurance, you take the risk of having to use your own money to repair your car. A collision insurance policy and a liability insurance policy make a good pair because the collision policy ensures that your insurer will settle the repairs for your car or pay out the value of your car that has been wrecked in an accident. If you have an older car, then this policy may not be necessary, but if your car is brand new or an expensive model, then a collision insurance policy is essential.
Medical Protection
The medical expenses associated with treating injuries incurred during an accident can be very expensive. This is not a problem with your insurance policy if it includes a medical protection plan because regardless of whom may have caused the accident, the policy can cover all the medical expenses including those of your passengers. However, if you already have a health insurance policy then a medical protection policy is unnecessary, because a health policy offers more coverage.
Uninsured Motorist Protection
Although many state laws require all vehicle owners to have an auto insurance, there are still those who fail to get insured. Others may have a liability insurance but with very low minimums that the policy is unable to cover all the expenses. This can be a major problem as you will be stuck with all the expenses when an accident is not your fault. As such, an uninsured motorist protection can cover you in these instances. The driver at fault will then have to pay the expenses with his own money when he does not have insurance or if his insurance is not enough.
Comprehensive Insurance
When your car is damaged by theft or change of weather, a liability and collision insurance policy will not cover the costs of repair or replacement. A comprehensive insurance policy is the solution to this, but it can be pretty expensive unless you have certain gadgets such as a tracking device or an anti-theft device installed as they can bring the price down.
Gap Insurance
If you are still paying your car off, purchasing a gap insurance policy is a good choice. This is helpful when you meet with an accident and still need to pay off the car. This is helpful if you owe a lot on the car than have the funds to pay off the remaining cost on such short notice.
ABOUT THE AUTHOR:
Valerie Renier is a freelance writer specializing in high risk insurance policies. She provides information about the necessity of insurance, the different types of auto insurance policies and other insurance assistance from an Omaha high risk insurance company
