What Type of Auto Insurance Should You Get?

While you may be tempted to stick with the minimum coverage for your car, you should look into comprehensive and collision insurance as well. These policies cover damage to your car, medical costs, and replacement services regardless of who is at fault. If you have an auto loan, your bank may require you to have this coverage. It may also come with a deductible. In addition, you should consider getting uninsured motorist coverage, which will pay for your medical expenses if you are hit by an uninsured driver. Depending on your state’s laws, it may also pay for damages to your vehicle.

Coverage limits vary by state, but most states require you to purchase at least bodily injury liability coverage. This coverage pays for the costs of injuries and death incurred in an accident. Property damage liability and uninsured/underinsured motorist coverage are also common coverage options. Some states also require you to carry personal injury protection and medical payments coverage. These coverages may have deductibles, but the costs can add up if you are involved in an accident.

In addition to bodily injury liability coverage, you can also get collision coverage, which pays for damages to another person’s car when you’re at fault. It also protects you from legal bills if you’re sued. Comprehensive coverage also protects you in case of vandalism and other damages caused by an accident.

Collision coverage is the most common type of insurance. This covers your car in the event of an accident, including collisions with other vehicles or inanimate objects. Most policies will also require a deductible before any repairs can be made. When choosing collision coverage, you’ll want to determine how much your bank is willing to pay out in the event of a claim.

In addition to the cost of collision insurance, you’ll also need to consider the annual mileage of your vehicle. This factor is extremely important when determining premiums. People who drive a lot for their jobs, for example, will pay higher premiums than those who drive a few times a year. In addition, drivers with a poor credit score can expect to pay up to 70% more for a full coverage car insurance policy.

If you’re worried about paying too much for auto insurance, consider telematics and other options. Using telematics to monitor your car’s usage habits could save you a significant amount of money. Different auto insurers offer different discounts, so make sure you compare multiple quotes to find the best one for your situation.

Auto insurance is a legal contract between you and an insurer. It requires you to pay a premium, and follow the rules of the insurer. Coverage limits and terms vary depending on the insurer. Premiums vary by state. It is a good idea to check the state’s minimums for car insurance. You can also lower your premiums by purchasing more coverage.