Types of Car Insurance Coverage

When figuring out the best car insurance coverage for your asset, it’s best to have a deeper understanding on what your car insurance is actually insuring. While you may be on the hunt for a single insurance policy that can provide coverage for a specific vehicle, there are a large number of factors that will influence the final cost of the policy. Before deciding which car insurance companies to purchase insurance from, it’s best to know the various types of car insurance coverage:

• Bodily injury liability provides coverage by car insurance companies for injuries and death claims against you as well as cover the legal cost if your car injures or kills someone during an accident.

• Property damage liability provides cover for claims any damages that your car inflicted during an accident. Note that since liability coverage provides protection from the other party, it is required in all states except in California, New Hampshire, Tennessee and Wisconsin.

• Medical payments covers for injuries suffered by you and to other occupants of the car. Note that in no-fault states, medical payments are replaced by personal injury protection which is a part of the basic coverage that is offered by most car insurance companies in those areas.

• Uninsured motorist protection provides coverage to injuries caused to you or the occupant of your car by hit and run motorists. Under-insured coverage is also available to provide cover over claims that you might take against a driver who do not have sufficient insurance.

• Collision coverage provides coverage to your car up to its book value. Generally, collision coverage carries a deductible which is the amount per claim that you have to compensate before the insurance is in effect. Remember that the lower the deductible, the higher the premium gets.

• Comprehensive coverage provides protection to your vehicle against theft, fire, vandalism, flood, hurricanes and other non-accident causes. This coverage also comes with deductibles.