Buying Automotive Insurance: Understanding Your Coverage Options
If you are buying a new automotive insurance policy, you will be asked about what type of coverage you require. While this may seem like a pretty straightforward question for some people, it can be a rather tricky question for others to answer. This is because you cannot be expected to answer questions about what type of coverage you require if you do not understand your different options first. That is why it is so important to take the time to familiarize yourself with your different coverage options.
Liability Coverage
Liability auto insurance is not typically considered a coverage option because this type of coverage is currently required by law. However, while you may not be able to choose whether or not to purchase this type of coverage, you should still understand what protection this type of coverage offers so that you can choose the right amount of coverage for your needs. Liability coverage is designed to protect you from being held personally liable for any costs associated with causing an accident. For example, this coverage will pay to fix the other driver's vehicle or for any medical expenses the other driver may have if you are found at fault for an auto accident.
Collision Coverage
Some lenders require collision coverage if your vehicle is being leased or financed. For people who own their vehicles, this coverage is typically optional. The purpose of this coverage is to pay for the cost of repairing your vehicle if you ever cause an accident. While anyone can choose to purchase this type of auto insurance, collision coverage tends to be most beneficial for individuals who own newer cars that still have a significant amount of value.
Comprehensive Coverage
Comprehensive auto insurance coverage is another type of coverage that is optional for most people and is designed to cover the cost of repairing your vehicle. The primary difference between collision coverage and comprehensive coverage is that while collision coverage protects you if you are in an accident, comprehensive coverage protects you if your vehicle is damaged by a natural disaster, theft, or vandalism.
Uninsured Driver Coverage
The law does say that all drivers are supposed to have liability insurance. However, the reality is that some people choose to break the law and drive without insurance. If one of these people hits your vehicle, you won't be able to simply file a claim with their insurance company to get your vehicle fixed. The purpose of uninsured driver coverage is to allow you to file a claim with your own insurance company in this situation. While this coverage is not required, it is typically a good idea to add this coverage to your auto insurance policy.
To learn more about your options, contact a company like LH Griffith and Company.
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