3 Jul

Auto Insurance: What Type of Coverage Do I Need?

upset driver in front of automobile crash car collisionTo be a responsible and law-abiding vehicle owner, driver, and consumer, you need to learn how to navigate the many different kinds of auto insurance available to you before taking out an auto insurance coverage. Otherwise, you might end up with coverage that you don’t need or worse, not having enough coverage. Below is some information on the common types of auto insurance you should consider.

Auto Insurance Coverage Basics

In general, you would need to pay more for comprehensive coverage that for the most basic coverage, explains a top car insurance specialist in Aurora. The key is to know which type of coverage do you need. For example, most states require that you be covered with liability insurance for covering damages you inflict on another driver or vehicle. But the specific extent of liability coverage differs from one state to another, such that some states won’t require that you have insurance coverage for covering damages to yourself or your vehicle in the event of an accident.

This means that although you would most likely need to have liability coverage for covering damage to other drivers and their vehicles, you might not have to purchase coverage for yourself or your vehicle. This is of course provided that you own your vehicle and not leasing it, as well as your honest evaluation of the potential risks while driving.

But if you want to have coverage for yourself, consider adding collision coverage or comprehensive coverage to your basic liability coverage. Comprehensive coverage would cover incidents such as natural disasters, vandalism, theft, etc. Collision coverage would cover damage from a collision with an object and another vehicle, or when your vehicle flips. Aside from the essential coverage mentioned above, below are other optional auto insurance coverage types to consider:

  • Limited/Full Tort
  • Personal Injury Protection/ Medical Payments Coverage
  • Underinsured/Uninsured Motorist Coverage
  • Glass breakage
  • Towing
  • Rental Insurance
  • Gap Insurance
  • SR-22

The Bottom Line

If your vehicle is a used, older model, you might be fine with having the most basic auto insurance coverage. But if you have a new vehicle, you might be better off with comprehensive coverage and other add-ons you see fit. Whatever auto insurance coverage you choose to go with, make certain that you fully comply with state laws to avoid getting in trouble should you get involved in an auto accident. And once you’ve bought yourself an auto insurance policy, make sure that you carry proof of it with you at all times.