Once you buy a car of your very own, you have a lot of big decisions to make. The most important of all is what level of auto insurance you will get. You have many options to consider while shopping for car insurance — and each one offers a different type of protection. To choose between them all, you have to know just what does auto insurance cover and which ones will serve you best.
Thankfully, we are here to help you figure it all out. Here’s what you need to know about the most common types of auto insurance coverage. This includes:
- Basic Liability
- Collision, Medical Payments Coverage, and Personal Injury Protection
- Uninsured and Underinsured Motorist Coverage
- Comprehensive Coverage
If you are at fault for an accident, it is your liability coverage that will pay for the other parties’ damages. Most states expect you to carry liability coverage at the very least. But it is a good idea to go beyond that type of car insurance to protect your bottom line if anything happens.
Liability only pays out for any injuries or property damage that the other parties experience. If they suffered minor to severe injuries or their vehicle got damaged, then your insurance will cover it. Liability does not cover your own vehicle’s damage, nor any injuries to you or your passengers.
Collision, Medical Payments Coverage, and Personal Injury Protection
If you want your insurance plan to cover your own losses, then you must add more coverage types, such as:
- Collision: Provides payment for car repairs or replacement, even if you are at fault
- Medical Payments Coverage: Pays for all needed medical care for you and your passengers
- Personal Injury Projection: Covers medical care, lost wages, and other related expenses
Not every state offers medical payments, coverage or personal injury protection. To figure out what’s available to you, just talk with your insurance company. Upon letting them know that you’d like your losses covered in the event of an injury, they will let you know which type of coverage to choose.
Uninsured and Underinsured Motorist Coverage
Uninsured and underinsured motorist coverage comes to the rescue if you are hit by a driver without the proper car insurance levels. It also comes in handy if the other driver runs from the scene and is not found and held responsible.
But what does auto insurance cover when you add on uninsured and underinsured motorist coverage? Your car repairs, for starters. Plus, any medical bills you or your passengers end up with as a result of injuries that happened in the accident.
In many states, this type of car insurance coverage is optional. But some do require it to ensure all drivers are well protected on all their travels.
Comprehensive Car Insurance
Liability, collision, and the like only offer protection in the event of an accident. If your car gets damaged by thieves, vandals, fire, or severe weather events, you are simply out of luck. That is, unless you have comprehensive coverage.
With comprehensive car insurance, you can sleep soundly knowing that any damage that happens to your car is covered. Whether a hailstorm rolls through or thieves pilfer your stereo, your car insurance company will cover your losses.
To get the most out of this coverage, you do need to set a deductible level that makes sense for your needs. Your insurance agent will help you price out the value of your car, its stereo equipment, and more to figure it out. As your deductible goes down, your monthly premium goes up. So, it’s worth the time to pin down the details.
How to Choose From All the Auto Insurance Options
For the best chance at choosing the best coverage types for your needs, partner with your trusted team at ONIT Insurance Group. We will look at all your different personal factors to create an insurance plan that offers your ideal level of protection. You can trust that we will not only help you find your proper coverage types, but also set the limits at the ideal levels. We’re here to simplify the process of finding the right coverage. We’re also happy to answer questions you have along the way, like”what does auto insurance cover?”
To get started, give our team a call at (1-800) 610-2134. Or you can just fill out our form for an online auto insurance quote.