Basics of auto insurance coverages

The simple reason for getting auto insurance is to protect you and your car. This task can be a difficult with the many choices on coverage and price. However, by understanding the different types of auto insurance, this task is made easier.

Almost all states require certain minimums of liability insurance. This is to protect passengers of the other car when you are responsible for any damage. It covers the medical costs and car repair costs, but not you or your vehicle. If you want to get insurance for yourself and your car, that is called comprehensive or collision insurance.

Collision insurance quotes are generally more expensive than liability insurance simply because there is more coverage. This pays for vehicle repair and medical costs, regardless of whether you were at fault or not in an accident. Collision insurance also covers other car damage like fire, vandalism and natural disasters.

Depending to certain circumstances, some deductibles can be chosen that will alter the total estimated annual cost for collision and comprehensive auto insurance quotes.

Personal injury protection (PIP) and medical payments are also offered by some companies. This supplements medical coverage and occasionally covers lost wages, childcare fees and any other expenditure resulting from accidents.

An additional coverage to minimum state requirements is bodily injury coverage. This kicks in when you were at fault in an accident, and the injuries of the other car’s passengers surpasses their personal injury coverage. If you don’t have this coverage, you may be exposed to legal action where the state could possibly place financial responsibility on you and your motor vehicle report. This can remain for three years, which is also known as SR22.

Uninsured motorist and underinsured motorist insurance takes care of you when an accident occurs with those who either don’t have insurance or have insufficient liability insurance.