Important Auto Insurance Coverages To Own

Car accidents can cause massive amounts of damage, both to property and to people. When factoring in repair bills, and medical bills, accidents can easily cost hundreds of thousands of dollars. By purchasing auto insurance, drivers protect themselves and for a monthly premium, won’t have to front the entire bill of a large accident. But, there are different kinds of coverages, and it is important to know which are important to purchase. While most people know the basics, there are many things that people do not consider when it comes to auto insurance.

To begin with, the most common type of car insurance is liability coverage. With this coverage, the insurance company will pay for damages to property in addition to the medical bills of others whom are injured in a car accident when you are found at fault. Typically, there are minimum limits that are required to be purchased by all drivers, which state an amount that the insurer is willing to pay for both property damage, and for injury to people involved. Legally, you are only mandated to buy minimum limits, but it is a great idea to purchase more than the minimum limits. The reason for this is that if you are found at fault for an accident, you will likely have to pay for the other parties’ medical bills as well. Failure to pay may lead to you being sued. Minimum limits usually don’t cover charges this high.  

Another important coverage to own is collision coverage. A collision is any occurrence where you car strikes another object or car, causing damage. With collision insurance, when you get into a crash, the insurance company will pay the repair costs for your car. This is also highly suggested to buy, because if you happen to total your car and don’t have collision insurance, you will be unlikely to reap any benefits. 

Another coverage that is not mandatory but suggested to have is Personal Injury Protection coverage. With this coverage, unlike liability coverage, you do not have to be found at fault to have your medical bills covered. It is also good to have uninsured/underinsured protection. Some drivers will not always carry up to the minimum limits of insurance, and if you were to get into an accident with a person like this, they would likely not have the funds to cover you. However, with this coverage, your insurance company will cover the difference of what is owed, when the underinsured driver can’t pay it.

Auto Insurance offers many different packages, and the monthly premium you pay will depend on a variety of factors. First and foremost, it will depend on how many different coverages you elect to buy. Secondly, other factors will be considered such as age, location, and previous driving record. Auto insurance is typically not over the top expensive, and packages containing a good amount of coverage can usually be obtained for around 100 dollars a month. 

One last caveat to point out is whether you are insuring a car for your own personal home, or if you are insuring a car for a business. Typically, if you are using a car for work, personal auto insurance cannot be used to cover it. There are packages in business insurance that allow you to insure work cars as a property of the business. In these cases, the above protections are usually the same.