Car insurance is a necessity in modern life. It’s simply not a convenient option for most people to live without an automobile. Getting a car is a big responsibility, though, and you need adequate car insurance to protect yourself and others if you get into an accident. However, there are many different types of insurance, and there are different claims you can make based on the type you have.
Liability Insurance
Most states require every driver to have liability insurance. It is usually the most affordable and least extensive auto insurance option. Liability insurance covers costs associated with an accident that you are found to be responsible for. Liability insurance will cover as much of the cost of repairs for property damage and medical bills as it can. There are minimums, but it’s a good idea to get a policy that can afford to pay for more if you can, too. If you get into an accident and the cost is higher than your allotted coverage, you will be stuck with the bill. So you want as much coverage as you can get.
Collision Coverage
Collision automobile insurance covers damage to your vehicle in the event of an accident, no matter who is at fault. It will pay for the repairs to your vehicle if the cost does not exceed the value of the car. If the cost does exceed the value, the car is totaled and you are reimbursed for the value of your car. Pretty good deal, no?
Well, if you have an old car this may not be worthwhile. The cost of the additional coverage may not be worth it if the value of the car is too diminished. Newer or more high-end cars are prime candidates for this coverage. Also, if you lease a car or borrow from a bank to pay for the car, you will likely be required to get collision coverage.
Comprehensive Coverage
What if your car is damaged, but not in a car accident? Comprehensive auto insurance coverage has your back. If your car is damaged by a fallen tree limb, vandalism, theft, flooding, fires, and more, comprehensive coverage will cover some or all of the costs associated. Collision and liability insurance will not.
This policy is great if you can afford it, but not necessary. If you have a tight budget or the car can be replaced easily, it is probably not worth getting. Once again, if you lease a car or borrow from a lender then you will probably be required to get this insurance.
Personal Injury Protection
Personal Injury Protection, or PIP, is additional coverage that is worth getting. Even the safest drivers can be injured in a car accident that isn’t their fault. PIP will help with medical bills associated with any injury a person gets from a car accident, regardless of who is at fault. Medical bills can quickly become overwhelming, and this will give you a lot of respites. PIP even covers the medical costs of passengers in the car with you.
Uninsured/Underinsured Motorist Coverage
If you are in an accident that isn’t your fault, you may still get stuck with a bill if the at-fault driver does not have insurance or their policy is not large enough to pay for all of the costs. You can pursue these damages in court, or get uninsured/underinsured motorist coverage. This will cover the expenses the other person can’t pay so that you don’t have to. Compared to other coverages, this is much more affordable, too.
Common Claims
Now you have a better understanding of the types of car insurance coverage you can get, but what are the most common claims that insurance covers? A few of the most common are:
- Windshield and auto glass damage – According to Complete Auto Glass, damaged auto glass makes up the majority of insurance claims (almost 30%). Rocks and stones kicked up on the road can make small cracks in your windshield that will quickly grow out of hand. You can use comprehensive coverage to pay for this.
- Fender benders – Small accidents are the most common type of car accident, and collision or liability insurance can cover the costs. Your premium will increase, however.
- Single-car crash – If you crash into a tree, guardrail, or otherwise damage your vehicle and no other car was involved, you will be found at fault. Collision coverage will help in these instances.
- Damage to a parked car – If someone hits a car and no one is around to see it, they may take off. If it’s your car, collision or comprehensive coverage will be able to handle it.
As you can see, the type of car insurance you have matters. Most of the common claims don’t actually fall under the category of liability insurance, the lowest bar of insurance coverage. Collision, comprehensive, and PIP can all help a huge amount for unexpected events.
If you need better auto insurance coverage, contact the experts at Modene Insurance today. We have over 30 years of experience finding the right coverage for car insurance, homeowners insurance, and business insurance.
