Types of Car Insurance: What You Need in 2022 - AllCarIndex
Like all other insurance policies, there are several types of car insurance coverages. Some of them cover other people and their belongings, while some will cover you and your property. Medical expenses are some of the worst bills that we can all get, so some of the auto insurance plans will cover some, or all, injuries done to yourself and others.
Deciding on what you need starts with analyzing your life and were you are financially. If you can pay for replacing or repairing your own car, it may not be worth getting a plan that covers it. Or, if you drive around in a 'beater with a heater' it would cost more to insure than it would be to replace. Analyze yourself, be honest with yourself, and go from there.
Let us take a more in-depth look at the policies that will be available. This will help you choose the coverage that you need.
1. Liability Auto Insurance - This is the basic coverage that most states require you to carry, in the least. It will cover any property damage that you cause during an accident, as well as any medical expenses to the other party or parties. It does not cover you, your property, or any expenses that you may incur.
2. Collision Auto Insurance - This policy will cover any damage done to your own vehicle due to an accident. It does not matter if it is with another car, or an accident by yourself. This type of coverage should be held if you are renting or leasing a car, or if the cost of repairing or replacing your vehicle is too much for you to manage on your own.
3. Comprehensive Auto Insurance - This is one of the policies that may mislead you about what it covers. It is not total coverage of everything like you would think. A comprehensive policy will cover damage done to your vehicle in instances not related to an accident. For instance, mother nature throwing natural disasters at you, or the kid down the block deciding to break your windows out. Vandalism and damage done from weather will be covered by the best car insurance plans.
4. Personal Injury Protection - As you probably have guessed this policy will cover any medical needs that you, or your passengers, have incurred during an accident. It may also cover lost wages and funerals (hopefully never needed).
5. Uninsured/Underinsured Motorist Coverage - Even though it is required in most areas people still drive without having any type of insurance. If you get into an accident with these people, you will be stuck with all the bills because there will be no insurance to cover them. If you do not have your own medical and property damage insurance you would want to add this, just in case. It is always better to be safe than sorry.
6. Medical Payments Coverage - This is more commonly known as a MedPay policy. This will cover medical bills that are charged due to the accident. Medical care for you, your family, your co-insured, and even your passengers. It is like Personal Injury Protection but is more focused and limited.
Those are the six basic auto insurance policies that you can get. There are other riders and add-ons that you can have placed on your policy. If you think you need something else speak to your agent and see what they have to offer. Every company will be different, that is why it is so important to compare them. Not only for the cost, but the coverage amounts and stipulations as well. If you are going to carry coverage for something, it should cover that without any restrictions.