It can be confusing sometimes to determine what kind of insurance you need. There are so many companies out there that offer affordable and a variety of different types of coverage. Some of the most popular top insurance companies are GEICO, Progressive, Allstate, Nationwide and Travelers, along with many other you can check out. There are five main types of insurance that mostly all insurance companies offer. Below are a description of each.
Liability insurance is usually your cheapest option. If you own your own car, have a good history of not being involved in any car accidents, and want to spend the lowest amount possible. This is probably your best option. It will cover the “other” person involved in the car accident to make sure they are taken care of in the event that you are the liable driver. However, you won’t be able to go through your insurance company to pay for “your” car damage.
Collision coverage is exactly what it says. It covers you in the case that there is a collision. It will pay for the repairs of your car minus the deductible. If your car is a complete loss and the amount to fix it is more than the value of the car, then you will receive a check for the Kelly Blue Book value. This type of coverage is usually good for people who have newer model cars or at least less than ten years old. If you know your car has a low value, and in the case of an accident you won’t be able to use that amount to buy another car of your choice, then this option may not be best for you. However, if your car has a reasonable value and can use to purchase another car, then this is a great choice.
Comprehensive coverage is important for those who live in rural areas or those who just want that extra protection. This covers other damages that don’t involve a car accident. If your car is stolen, hit a deer, crazy ex damage, weather etc, these would fall under this coverage. This will make your insurance cost rise a little, but it’s great for peace of mind.
Personal Injury Protection
Personal injury is exactly what it sounds like. It covers you in the case that you are personally injured. Some people may feel like this won’t happen to them and this is unnecessary, but truth is no one knows the future. It’s great to have because it will cover your medical bills along with the passengers no matter who is at fault.
Uninsured /Underinsured Motorist Protection
If a person who damages your vehicle has no coverage..then what? Do you want to spend time getting a lawyer and taking them to court for the damages before getting your car fixed? Well if the answer is no, and you would like to have your car repaired in the meantime, this is a good coverage to have. Uninsured motorist will help cover the cost of your damages minus the deductible to help cover the cost of your vehicle.