Comparison shopping for auto insurance doesn’t have to be a daunting task. Knowing what is required by law and the five main types of auto insurance available will help streamline the process and help you make an informed decision about the coverage that’s perfect for you.
Liability Coverage
This coverage is required in almost every state. The amount of required coverage varies between states, and it is recommended that you purchase coverage that exceeds the state’s minimum requirement. Liability coverage pays the costs for the other driver’s expenses following an accident. If you are deemed to be at fault, this extra amount of protection can be beneficial, as costs exceeding your policy maximum are your responsibility. Deductibles will apply.
Collision Coverage
Typically, collision coverage is only required for leased or financed cars. Collision coverage pays for repairs or replacement of your vehicle, whether or not you were responsible for the accident. Deductibles will apply.
Comprehensive Coverage
This insurance coverage includes costs from damages not sustained in a collision. Theft, vandalism, severe weather, fire and animal damage are examples of incidents that fall under comprehensive coverage. This is an optional policy in most states. However, if the vehicle is financed or leased, it may be a requirement of the lease or finance document. Deductibles will apply.
