Although many car insurance companies offer the same range of policies, the policies themselves differ widely. Some types of cover are incredibly basic and provide you with the minimum needed to get on the road, while others are much more inclusive and are likely to protect you whatever happens.
Insurance can be expensive, but finding out your policy doesn’t include something you need can cost you even more. The best way to avoid a nasty surprise down the road is to pick the best car insurance to suit your personal needs.
To help you get it right, here are some of the most common auto insurance policies offered by the majority of insurance companies and an overview of what they cover.
Liability
Liability insurance is the most basic type of insurance most states require you have so you can legally drive your car on the road. This policy may help pay for property damage and injuries sustained by others if you’re found responsible for a car accident.
Collision
If you’re in an accident involving another vehicle and your car is damaged, collision coverage may help. It can provide you with funds to put toward repairing your car or replacing it if it’s too damaged to fix.
Uninsured motorist
When the driver who is responsible for the accident doesn’t have any insurance, uninsured motorist coverage steps in. It can help pay for the injuries you suffered and any damage to your car as a result of uninsured drivers and hit-and-run accidents.
Underinsured motorist
In a similar way to uninsured motorist insurance, underinsured motorist insurance may protect you if you’re involved in an accident with another driver whose coverage doesn’t cover the costs. Some drivers choose a basic liability policy to save money and then find out they don’t have enough coverage when they have an accident.
Comprehensive car insurance
Comprehensive cover is one of the most popular types of car insurance. It offers great cover if you’re involved in an accident with another vehicle. It can help pay to fix damage caused to your vehicle for many different reasons, including collisions, bad weather, vandalism, and incidents involving animals.
Medical payments
Paying for hospital stays, doctor appointments, and chiropractic sessions following an accident can get expensive. Medical payments insurance makes it easier to pay for any care and treatment you require after an accident, regardless of who was responsible.
Personal injury protection
Also known as PIP, personal injury protection may cover the cost of certain medical expenses, as well as loss of income while you’re recovering from one of the types of accidents they deal with Depending on the type of policy you choose, PIP may cover as much as 80% of your medical expenses following an accident.
Towing and labor
Towing and labor coverage makes it cheaper to tow your car and have it fixed in a quality auto repair shop if it’s involved in an accident. Although you may have to pay out of pocket for towing and labor, your insurance company may reimburse you afterward.
Gap
Cars drop in price incredibly quickly. And if your vehicle is lost, stolen, or written off, the auto insurance settlement you receive may not be enough to pay off any outstanding debt on it. Gap insurance can help you pay off your car loan if your basic policy won’t.
Rental reimbursement
If your car is written off or is going to take a lot of time to fix, rental reimbursement coverage may help you get around in the meantime. This type of policy provides you with funds to pay for a rental car until yours is back on the road.
Classic car insurance
Classic car insurance is a specialist type of policy for owners of vintage and classic cars. It provides additional payments for useful extras not included in other policies, such as repairs in an auto shop that specializes in vintage, classic, or antique cars.
The right car insurance for you
It’s essential to take out car insurance before you get on the road. But what type of car insurance you choose is ultimately down to you. The broader the insurance policy is, the higher the premiums are. Because of this, it’s a smart idea to select the type of cover which includes everything you need without any extras. This way, you only pay for the services you’re likely to use and nothing more.
Don’t forget that you’re rarely stuck with the insurance policy you choose. If you change your mind and want to upgrade to a superior type of cover, many companies will happily make the switch for you. All you need to do is decide which policy you want and pay the difference. However, this usually only works when you’re upgrading your policy. If you want to downgrade your cover, you may be able to — but you’re unlikely to receive any money back.
About the author
Matt has been helping providers within the healthcare setting for over a decade realize how best to solve a patients problem by understanding the individualism of each patient and what their true needs are. To focus on the patient and they “Why” they need their particular service that goes beyond the initial reason for them to seek treatment.
In the Chiropractic world now for over 3 years, Matt not only takes the knowledge he has gained from other healthcare services he has supported, but also has access to over 75 years of combined real life hands on experiences from the many doctors within the Veeva Chiropractic landscape.
