Coverage Options for Auto Insurance

Before shopping for auto insurance, you need to understand the different forms of coverage available. Insurance coverage for autos can be divided into three main components: liability, comprehensive and collision. Your policy will divide the cost into parts of the premium.

Let us examine the three distinct parts of your insurance coverage. About 40% of your premium will be for collision and comprehensive insurance. There will be a deductible amount that you must pay before you can make a claim. If your claim costs $500 but your policy carries a $300 deductible, you will have to meet the cost for the first $300, then submit a claim for $200. Policies usually also include medical payment coverage for you and your passengers, regardless of who is at fault.

• Comprehensive Insurance
• Liability Insurance
• Collision Insurance
• Extra Insurance Options

Comprehensive Insurance

A percentage of your premium will be dedicated to uninsured motorist protection in case you are involved in an accident with someone who carries no insurance whatsoever. As suggested by its name, comprehensive insurance is just this. It pays for replacement or repairs if your car is, for example, stolen or damaged in a fire, or by high winds or flood.

Liability Insurance

Liability insurance protects you if you are at fault in causing an accident. You could be liable not only for the total damages to other vehicles, but also for lost wages, medical costs and even pain and suffering for all those involved.

Collision Insurance

Collision insurance covers repairs to your vehicle, or for the replacement of it, at its market value at the time of the accident regardless of who is at fault. But did you know that this would also apply to static objects like lamp posts or telephone poles?

Extra Insurance Options

There are many extra auto insurance options that can be added to your main policy. An example of this would be insurance for a rental car if your vehicle were damaged to the point of not being drivable, or requiring several days to repair.

To protect yourself and your family, you should make sure you are covered for any eventuality on the road, getting as much insurance as you can afford. If you are underinsured, and involved in a costly claim, it could wipe you out financially. Adequate insurance will protect you from this nightmare.