If you are considering shopping around for new car insurance, you may want to also consider whether or not you have enough coverage. Usually the main things that come to mind when shopping for insurance are collision, comprehensive and liability coverage. You may not even pay much attention at all to your car insurance until you've been in an accident. So while looking for new coverage, or even going over your current policy, consider the following information.
The purpose of car insurance is two-fold: You are looking to protect your assets, and you are looking to protect your health. The most basic types of car insurance coverage is liability, comprehensive and collision.
Liability pays for death-related claims and third-party personal injury. It also pays for damage to another person's property that has resulted in the car accident. There are only a few states that don't require liability coverage on your insurance policy.
Collision is coverage that pays to repair your car after your accident. If you have a loan against the car, collision is required.
Comprehensive coverage is required to pay for damage due to a fire, theft, or vandalism. If you have a loan on the car, you will need comprehensive coverage, but you have the option of dropping that coverage once your loan is paid off. (For more information on auto insurance, contact Holt Insurance Services)
You may want to consider these additional coverage options and whether or not to keep them:
- Full and Limited Tort: This is your right to sue in the event of an accident. Dropping it means you can save a few dollars on your insurance bill, but dropping this is not the best financial move.
- Personal Injury and Medical Payments. This coverage will pay for injury and medical bills for you and your passengers. If you have a good health insurance policy, this coverage may not be necessary.
- Towing. This coverage will pay for your car to be towed if it cannot be driven after it's involved in an accident. If you have some type of automobile service membership, or if your vehicle came with roadside service when you purchased it, you may not need to have towing coverage on your insurance policy.
- Under-insured/Uninsured Coverage. This is coverage for property damage and medical bills if you are involved in an accident with someone who has little or no insurance.
- Glass coverage. Some insurance policies don't cover class breakage under their comprehensive or collision provision, so you'll want to determine whether or not you think glass coverage is necessary.