Auto Insurance Coverage Recommendations

Buying auto insurance can be a daunting task, especially if you are not familiar with the various types of coverage that are available. In this article, we will go over some recommendations for auto insurance coverage that can help you make an informed decision.

Liability Coverage

Liability coverage is the most basic form of auto insurance coverage and is required in most states. This type of coverage protects you from financial responsibility if you are at fault in an accident that causes bodily injury or property damage to another person.

It is recommended that you have at least the minimum liability coverage required by law, but it may be a good idea to purchase higher limits to ensure that you are adequately protected in the event of an accident.

In addition, consider purchasing a personal umbrella policy which provides liability protection in excess of your auto insurance policy limits. This can help protect your assets in the event of a serious accident.

Collision Coverage

Collision coverage is optional but recommended if you have a newer or more valuable vehicle. This type of coverage pays for damage to your own vehicle if it is involved in an accident, regardless of who is at fault.

It is important to note that collision coverage only pays up to the actual cash value of your vehicle, minus your deductible. If your vehicle is worth less than your deductible, it may not be worth carrying collision coverage.

Comprehensive Coverage

Comprehensive coverage is also optional but recommended if you have a newer or more valuable vehicle. This type of coverage pays for damage to your own vehicle that is not caused by an accident, such as theft, vandalism, or weather-related events.

It is important to note that comprehensive coverage also only pays up to the actual cash value of your vehicle, minus your deductible. If your vehicle is worth less than your deductible, it may not be worth carrying comprehensive coverage.

Uninsured/Underinsured Motorist Coverage

Uninsured/underinsured motorist coverage is another optional but recommended type of coverage. This type of coverage protects you if you are involved in an accident with a driver who does not have enough insurance to cover the damages, or no insurance at all.

It is recommended that you have at least the minimum uninsured/underinsured motorist coverage required by law, but it may be a good idea to purchase higher limits to ensure that you are adequately protected in the event of an accident.

Medical Payments Coverage

Medical payments coverage is also optional but recommended. This type of coverage pays for medical expenses incurred by you or your passengers in the event of an accident, regardless of who is at fault.

It is important to note that medical payments coverage is typically limited to a certain amount and may not cover all medical expenses. However, it can provide additional coverage in the event of an accident.

Rental Car Coverage

Rental car coverage is another optional but recommended type of coverage. This type of coverage pays for the cost of a rental car if your vehicle is being repaired or replaced after an accident.

It is important to note that rental car coverage is typically limited to a certain amount per day and may not cover all of the costs associated with renting a car.

FAQ

Auto insurance coverage can be complex and confusing, but with these recommendations and a good insurance agent, you can make an informed decision about the coverage that is right for you.