Understanding the Different Types of Car Insurance Coverage

Although millions of Americans purchase auto insurance each year, considering the different types of car insurance coverage can be overwhelming. The policy language is notoriously obtuse. It is also difficult to know what kind of coverage would benefit a driver’s particular situation. The following are a few of the most common types of car insurance coverage options. While this list is limited, all drivers should consider speaking to a qualified attorney who can help them understand how to minimize their responsibility by selecting an appropriate car insurance policy. Speaking to an experienced and qualified attorney can save motorists thousands of dollars in the event of an unfortunate accident by way of claims or damages.

Personal Liability Insurance

Personal liability insurance will cover a motorist’s expenses if he or she was involved in a car accident and was ultimately found responsible for the incident. This type of car insurance will cover any damages caused to other cars involved in the incident, as well as other property. Equally important, this form of insurance will also cover any medical bills that may arise due to the injuries sustained by the other parties. Many states have a minimum requirement of liability coverage. It is important to note, however, that the greater the coverage, the higher the insurance premiums will be.

It is highly recommended that if it is possible, greater insurance coverage options should be elected. Opting for greater coverage will provide extra protection if you are found liable for a car accident. Unfortunately, many motorists only choose the minimum state mandated insurance coverage. In the event of an accident, these motorists will be held responsible for paying the expenses that are not covered by their insurance coverage. When electing the coverage amounts, it is important to keep in mind that cars alone are expensive. After a catastrophic auto accident, expensive medical payments will also need to be covered.

Collision Coverage Insurance

In a covered auto accident, collision coverage insurance will compensate for the repairs to of the payee’s personal vehicle. If the payee’s personal car is completely totaled and the cost to repair the vehicle exceeds the value of the car, a collision coverage policy will pay the current value of the vehicle.

Depending on the age and or mileage of the vehicle, it may not be worth opting for collision coverage. This is because the value of the vehicle will drastically implicate the importance of carrying the coverage. Assuming an insurance payee’s car is fairly new or is more expensive, it may be a good idea to opt for this added protection. It is worth mentioning that if there are payments being made on the vehicle and therefore the auto has a lienholder, collision coverage will be mandatory.

Comprehensive Coverage Insurance

There are many other damages that can happen to a vehicle which are not only unforeseen. They can  occur regardless of whether or not the vehicle is in use. These types of damages can include, but are not limited to the following:

  • Hitting an animal on the road,
  • Vehicle theft,
  • Damage to the vehicle while it is parked, and/or
  • Weather damage

Comprehensive coverage insurance will cover help to cover the costs for these forms of damages. It is recommended that this added insurance coverage is elected, however, in the event that the car has a lienholder, this coverage will be mandatory.

Personal Injury Protection

Both comprehensive and collision coverage are an additional coverage policy that is not always required, depending your specific situation. Personal injury protection, however, is highly recommended. Being involved in an accident can quickly result in high costs for injuries and damages. To help cover these immense costs, personal injury protection can help minimize the responsibility. Personal injury protection covers you as a driver and your passengers. More importantly, you will be covered regardless whether or not you were found to be responsible for the car accident. However, personal injury insurance is not always available in every state.

Uninsured or Underinsured Motorist Protection

Although all state laws require that absolutely all motorists be insured, unfortunately, this is not always the case. Another common problem is that while motorists may have liability insurance, many regions have fairly low minimum coverage demands. Many of these coverage policies are not enough to cover the high expenses that can result in any car accident. Assuming a driver is legally liable for the damages related to a car accident, many drivers run the risk of not receiving any form of compensation if they themselves do not have the necessary coverage. In most of these cases, may only recuperate a fraction of the compensation for damages sustained.

Having an uninsured or underinsured motorist protection can help many drivers cover the costs of these damages. Being dramatically injured or having a totaled vehicle can dramatically affect anyone’s quality of life. With uninsured or underinsured motorist protections, drivers can feel at ease. They will not have to rely on others to get back to their daily routines.

After a car accident, a personal injury attorney near you can help make sure that your insurance company plays fair. While the reps may seem nice, their goal is to pay out as little money as possible. Without an attorney on your side, you may get stuck paying for bills that are supposed to be covered by your policy! When you’ve been in a serious car accident, you need a car accident lawyer to walk you through the choices you face.