Types of Car Insurance

There are a multitude of car insurance coverages available for car owners. The coverage depends on the type of vehicle, driver record, miles driven and the location. The rate and services vary with the location as well as the insurance carrier. The major car insurance carriers such as Geico, Progressive, State Farm and Allstate offer all kinds of card insurance policies to meet the demands of car owners in all states across the Unites States and neighboring countries. It is important for a car owner to know the types of insurance available for his or her car, before requesting a quote from an insurance provider.

Liability Insurance

Most state governments require insurance while registering the car at a DMV office, and they are looking for liability insurance coverage. Liability insurance covers damages from a collision when it’s your fault. It covers the damages to other people, other cars, other autos and damages to properties such as buildings. It also covers medical claims arising from the accident. Most states would demand a minimum amount of coverage for liability protection. It is always a good idea to buy more than the minimum to keep you protected in case you become liable for damages in an accident. The amount of liability insurance needed depends on your driving habits and the number miles driven daily. Most insurance carriers such as Geico, Progressive, State Farm and Allstate offer liability protection at competitive rates.

Comprehensive Insurance

The comprehensive coverage protects you from non-accidental damages such as theft, weather conditions, animal collision and vandalism. The insurance company will cover your damages in case of unexpected, yet viable incidents such as these. It is a nice to have cover, although not required. Most insurance carriers will lower the premiums if you have anti-theft device installed on your car.

Collision Insurance

The collision insurance helps you to cover the expenses to repair your car in case of an accident. The insurer will pay for the repair or replacement costs. If your car was totaled, the insurance carrier will typically assess the value of your car and make a payout to help you purchase another car. For older cars, it may not be necessary to have collision insurance. For new cars, it is wise to have collision cover, to help you with expensive repairs.

Personal Injury Coverage

Medical or personal injury cover will protect you from the expensive medical bills after an injury accident. This is even more important if you don’t have sufficient healthcare insurance. If you have very good healthcare insurance, then you may not need to add personal injury insurance as part of your car insurance.

Uninsured Motorist Coverage

Sometimes, you may end up in an accident at no fault of yours, yet the other person may not have sufficient liability coverage to cover the cost of your damages. In this case you are left with a cost of a big repair. However, if you have uninsured or underinsured motorist coverage, then your insurance carrier will protect you from any costly repairs to your vehicle. If the other person does not have the financial means, then this coverage will protect you.

Gap Insurance

This insurance will cover your loan payments if your car was totaled in an accident. This is a good cover if you owe a bigger sum on your vehicle. Some lenders would require the car owner to have gap insurance. Most major carriers such as Geico and Progressive offer this coverage.

No-Fault Insurance

A no-fault insurance covers your expenses regardless of who is responsible for the accident. It is available in 12 states as of now. Again, the decision to add no-fault cover depends on your other coverages. If you have a decent healthcare insurance, then you may not need this.

Rental Reimbursement Coverage

This insurance helps you to cover the cost of rental while your vehicle is being repaired. You may not need this if you a have a second car. You can rent from a car rental agency and sent the bill to your insurance carrier. You can also pay the rental amount and then submit a claim to your car insurance carrier.

Other Car Insurance Coverage

Almost all major insurance providers such as Geico, Progressive, State Farm and Allstate provide a wide range of additional insurance types for your car. These are optional are not required, and depend on your needs. These include emergency roadside coverage, and towing and labor coverage.