Types of Auto Insurance Coverage

You will see more and more drivers on the road each year. This could lead to a higher possibility of a collision. The difference between a small aggravation and large pain can be the car insurance you own. So how do you know what type of car insurance you need and how much to buy? Mandated coverage varies based on the state/province but usually includes the following: Liability: Personal injury and property damage that you are responsible for will be paid for under liability insurance. It also covers your defense and court costs if you are sued. State laws usually require standard amounts of liability insurance, but larger amounts can be purchased and are extremely helpful. Personal Injury Protection: This is required in some states and is optional in others. It pays you or your passengers for medical treatment resulting from a crash, regardless of who may have been at fault, and is often called no-fault coverage. This insurance may also pay for lost earnings, replacement of services and funeral expenses. State law usually sets minimum amounts. Medical Payments: This coverage can be purchased in non-no-fault states; it pays regardless of who carries responsibility for an accident. This insurance will pay for an insured person's reasonable medical and funeral expenses for bodily injury from a crash. Collision: Pays for damage to your car caused by an accident. Comprehensive: This kind of insurance takes care of any damages not caused by a collision. This could include hail damage, vandalism, and theft. Uninsured Motorist: Many drivers are breaking the law by driving a car without having the proper amount of car insurance. This type of coverage will cover you if one of these drivers hit you. Under-Insured Motorist: Just like uninsured coverage, this kind of insurance covers you from drivers without enough insurance coverage. Other types of coverage, including car rental, are also available. What you pay for car insurance varies based on the company and will depend on several factors, including: *Your selected coverage *Your vehicle's make and model * Your driving record * Your age, sex and marital status * The place where you live Some people have consider car insurance as a necessary evil, but it can truly save you from a financial disaster. Review your needs, do your research , and with the help of your insurance agency, choose the option that best suits you. State Farm Clermont