November 22, 2010

4 Essential Types Of Car Insurance Coverage

When you start looking for car insurance converge, you will come across several types of car insurance. Sometimes, you might find it difficult to choose from the many types of car insurance policies. Here is a list of four essential types of car insurance coverage.

Liability car insurance coverage is one of the most common types of car insurance and is mandatory for every driver. This type of insurance provides coverage for damage to property and accidental personal injury caused to another individual. Physical injury damages can include pain and suffering, lost wages, medical bills, and more. Property damage can be damage that you caused to another driver's vehicle and other personal property involved in an accident. Liability insurance coverage of at least $500,000 or $1,000,000 is recommended.

Collision car insurance provides coverage for damage to your vehicle due to a collision. This type of car insurance coverage generally involves a deductible and it is always a good idea to go for the highest deductible that you can afford. If the deductible is higher, the car insurance policy amount will be lower. Collision car insurance coverage is highly recommended if you have an expensive car. However, if your car is old, you need not opt for this type of coverage. This is because the maximum amount the car insurance company will pay out is the value of your vehicle. If the vehicle that you are driving is financed or leased, the lender will generally need you to get collision insurance coverage as a condition for the lease or loan.

Comprehensive car insurance. This type of car insurance provides coverage for your vehicle when there is a non-collision type damage. Some examples of this type of damage are fire, theft, vandalism, natural disasters such as floods, ice storms, hail, hurricanes and more. Just like collision car insurance coverage, most lenders require comprehensive coverage if the vehicle is leased or financed. Otherwise, comprehensive car insurance coverage is optional and is recommended only if your car is worth more than $1000. Deductibles could range from $250 to $1000.

Another type of car insurance is uninsured motorist insurance. This type of car insurance provides coverage for medical and property damage when the other vehicle's driver is at fault and he or she does not have an insurance policy to cover the injuries and damages. In some states, uninsured motorist coverage is compulsory.

When it comes to car insurance coverage, there are many options that are available besides the normal liability and collision coverage. Additional car insurance coverage such as rental car, uninsured motorist, comprehensive and towing can provide you extra peace of mind for a more enjoyable driving experience.