The 411 on different types of auto insurance
The basic reason why anyone requires auto insurance is for protection for both you and your car. Depending on your location you have a number of options to choose from for the type of auto insurance you require. Initially, it can be confusing with the plethora of choices available to consumers today. But by getting an understanding of the different types of auto insurances, the task is certainly made easier. Apart from a handful of states, all the others require a minimal amount of liability insurance. This type of insurance is mainly meant to protect the occupants of the other car when you are responsible for any damage.
It covers their medical bills and car repair but not you or your vehicle. For yourself, the insurance you need is comprehensive or collision insurance. Auto insurance quotes for collision insurance are much higher than liability insurance mainly due to the fact that the coverage is a lot more. It pays for the repairs required for your car as well as your medical bills irrespective of whether or not you were at fault in an accident. Comprehensive insurance covers a majority of other kinds of damage to your vehicle including fire, vandalism or natural disasters.
Based on the particular circumstances, various deductibles can be opted for that will alter the total estimated annual cost for collision and comprehensive auto insurance quotes. Medical payment and personal injury protection are also available with some companies. They increase medical coverage and sometimes even cover lost wages, childcare costs and related expenses owing to accidents. Bodily injury coverage is an important coverage in addition to the minimum requirement coverage. This is for auto accidents where you were at fault and in situations where the injury of the other vehicles’ occupants exceeds their personal injury coverage. Lacking this coverage gives the victim of the accident the right to legal action which may result in a financial responsibility being placed by the state on you and your motor vehicle report. This would remain for three years. It is also referred to as an SR22. Uninsured motorist and underinsured motorist insurance take care of you when you happen to be in an accident with those who either don’t have or have insufficient liability insurance. Rental reimbursement and towing and labor insurance are other additional options.
These costs are usually classified as add-ons or endorsements to your policy. For auto insurance quotes companies require details about driving records, age and duration of a license, apart from inspection of your car for the purpose of certifying it.
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