Understanding Auto Insurance:
Updated: Jul 3
Auto insurance is an essential investment for any car owner. It protects you financially in case of accidents, theft, or damages caused by natural disasters. But with so many options available, it can be overwhelming to figure out which coverage you need. In this blog post, we'll break down the most common auto insurance coverages and explain what they cover.
Liability coverage is required in most states. It covers the cost of damages and injuries you cause to others in an accident. This includes medical expenses, lost wages, and property damage. It also covers legal fees if you are sued as a result of the accident.
Collision coverage covers the cost of repairs or replacement of your vehicle if it is damaged in an accident. This includes collisions with other vehicles, objects, or even potholes. Collision coverage is usually required if you have a car loan or lease.
Comprehensive coverage covers damages to your vehicle caused by non-collision incidents, such as theft, vandalism, fire, or natural disasters like hurricanes or floods. This coverage is not required by law, but it's a good idea to have if you live in an area prone to these types of incidents.
Personal Injury Protection (PIP):
PIP coverage covers medical expenses and lost wages for you and your passengers in case of an accident, regardless of who is at fault. It also covers funeral expenses if a passenger is killed in an accident. PIP coverage is required in some states.
Uninsured/Underinsured Motorist Coverage:
Uninsured/Underinsured Motorist coverage protects you if you are in an accident with a driver who has no insurance or insufficient insurance to cover the damages. It covers medical expenses, lost wages, and other damages caused by the other driver.
It covers services such as towing, tire changes, jump-starts, and lockout assistance if your car breaks down.
Rental Car Coverage:
It covers the cost of a rental car while your vehicle is being repaired after an accident.
Choosing the right auto insurance coverage can be confusing, but it's essential to have adequate coverage to protect yourself and your car. By understanding the different types of coverages available, you can make an informed decision and feel confident that you are covered in case of an accident. Don't hesitate to reach out to our agency for assistance in selecting the best coverage for your needs.