If you get rear-ended on the freeway this evening, will you be covered by your auto insurance? If you hit a deer, will you still be covered? Did you know that these incidents aren’t covered by the same type of coverage? Do you know what your deductible will be? If you can’t answer all of these questions, you need to educate yourself on Auto Insurance. If you are thinking about getting auto insurance then you might want to check out something like this Truly Insurance review of costco auto insurance to give you a better idea of what you should be looking for. Everyone with a car needs to have insurance, and you should know what your purchasing when you buy it. Here is your different types of auto insurance coverage explained.
Collision Insurance
Collision insurance is the type of insurance that covers accidents that involve other vehicles or stationary object. Collisions are the only thing that collision insurance will cover, hence the name. It will pay for the cost of repairs after the deductible is paid. If the frame of the automobile is cracked or the cost of repairs exceeds the value of the vehicle, the insurance company will pay out the value of the vehicle.
Comprehensive Insurance
The most common type of insurance that people choose to opt out of, is comprehensive insurance. That is because it is often the most expensive coverage to carry. While it’s expensive, it covers a lot of different things that can happen. Basically, anything that causes damage to your vehicle that is unrelated to an accident is covered by comprehensive. This can be an act of God or a burglary. This is also what would cover you if you were to hit a deer on the highway. An act of God can be a flood or a tree falling on it. Since the cost can be high, comprehensive isn’t always worth it. If your vehicle is paid for and not worth more than a couple thousand, it might be better just to skip this car insurance coverage and purchase another older, used vehicle if something happens to it.
Liability Insurance
Liability insurance is required as a minimum coverage for every state. Some states require other types of coverage with it, but this is something that is always required. This is because liability insurance covers any vehicle that you hit when you are at fault in an accident. If you only have liability insurance and you cause an accident, your insurance will only pay for the other driver’s vehicle. Any repairs that need to be done to your vehicle will have to be paid out of pocket at your expense.
Uninsured Motorists Insurance
While liability is always required, it doesn’t mean that everyone has it. There are always people who drive around uninsured and hope they don’t get caught. In an event of the accident, the person who causes the accident is the one who has to pay. Therefore, if you aren’t at fault and the other person is uninsured, there isn’t an insurance company to pay for your repairs. Your insurance company will pay for yours if you carry uninsured motorists protection.
You can always get a lawyer and file a lawsuit if someone hits you without insurance. Unfortunately, lawsuits can take months to be resolved. If the person doesn’t have insurance, the chances are, they don’t have any money. Therefore, even if you win a lawsuit, it could take a long time to get any money. It’s best to just have the uninsured motorists protection and avoid the hassle. Car insurance is extremely important. It’s just as important to understand the types of coverage so you know exactly what you have. You don’t want to be blindsided by your insurance company after an accident.
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