Auto Insurance

Car Insurance

Driving is the most popular mode of transportation. And most states require any vehicle on the road have insurance. But even if coverage isn’t required, it’s wise for drivers to get insured. Even the slightest amount of coverage is better than no coverage at all. Auto insurance is available in three main types: collision, comprehensive and liability.

States that require auto insurance also require drivers to take responsibility for damages they cause on the road. That’s the main point of liability car insurance. And liability is a common state insurance requirement. Liability pays for medical expenses, car repairs and other expenses that you cause during an accident. Note that liability doesn’t pay for your own expenses.

If you have a car loan, it’s likely the lender will require collision or comprehensive coverage. Since your vehicle is collateral, the lender wants to make sure it stays in good condition. Collision coverage pays to repair your vehicle after an accident, and comprehensive coverage pays for a wider range of incidents. Rental car coverage, towing coverage, personal injury coverage, and personal property coverage are additional options. Your policy has limits, and it will only pay a claim up to that limit.

You’ll have to pay a deductible and premium on your policy. It’s common to pay around $500 for a deductible, but it’s possible to request a higher or lower amount. You’ll have to pay this amount when you file a claim, so it should be affordable. Just remember a lower deductible usually results in a higher premium.