Protecting My Car

Car insurance protects you from significant financial loss after an accident. Without it, your pockets may get severely dented as you pay for repairs and injuries sustained out of pocket. If you're a new car owner, you should know the different types of car insurance available. This way, you can choose the coverage that meets your specific needs without breaking the bank. 

Here are the three main auto insurance plans you should consider for your car.

Liability Coverage

Liability insurance kicks in when you're responsible for injuries and damages during an accident. The coverage takes care of any vehicle repairs and medicals bills. Generally, this insurance covers bodily injury and property damage. 

If you are to blame for the accident, your bodily injury coverage covers damages sustained by other parties, which includes lost wages, medical bills, and pain and suffering. Furthermore, liability coverage covers repairs or replacement costs if you hit a vehicle, a building, fences, or mailboxes during an accident. 

Collision Coverage

If you purchase collision coverage, the insurance company will bear all the repair costs if you flip over on the road and your car gets damaged. Collision coverage also protects you if you lose control while driving on an icy asphalt surface and crash into a guard rail, pothole, or a tree.

In addition, this insurance coverage pays for repairs up to your car's cash value if you hit another car. Here, it doesn't matter who is at fault. When repair costs exceed your car's market value, your insurance provider may declare your vehicle a total loss. In such a case, your insurer may give you an amount equivalent to your car's actual value so you can purchase another car.

Also, note that collision coverage doesn't cover your car's wear and tear or mechanical failure. Still, you should include this relatively affordable cover in your insurance plan for financial protection when a collision occurs. 

Comprehensive Coverage

Comprehensive coverage covers all risks associated with your car, passengers, driver, and third-party property, driver, or vehicle passengers.  You also get protection against theft, fire, vandalism, floods, and weather damage. Your comprehensive policy will also pay for damages if a falling tree hits your car, if you hit a deer, or if your car sustains windshield damage. 

Also, remember that comprehensive coverage only covers automobile damage and not personal items like car radio or your wallet if they're stolen. This insurance is optional in all states. But if you have a lease or loan, your leaseholder or lender may need you to have it.

As you hunt for a favorable auto insurance policy, choose a coverage option to maximize your benefits and lower your risks. Speak to your auto insurance agent for further guidance on car insurance policies.

For more information on auto insurance, contact a professional near you.