There are several different types of auto insurance coverage which may or may not be included when you request a quote. Understanding exactly what protection each of these coverage options offers will allow you to make sure you are choosing the policy that is best suited to your needs. This knowledge will also go a long way towards helping you to save money on your insurance coverage by ensuring that you do not end up paying for coverage that you do not truly need.
Personal Liability And Bodily Injury
As you are likely aware, the law requires all vehicle owners to maintain auto insurance. This coverage option allows you to meet those legal requirements. Consequently, any auto insurance policy that you purchase will need to include this type of coverage.
The purpose of personal liability and bodily injury coverage is to provide protection for all of the other drivers on the road. If you cause an accident, this insurance coverage will pay for the cost of repairing or replacing the other driver's vehicle. This insurance coverage also covers any medical bills or other financial losses associated with injuries the other driver may have suffered.
Comprehensive And Collision
Unlike personal liability coverage, comprehensive and collision coverage is not required under the law. However, it is quite common for auto loan lenders to require individuals to carry this type of coverage as long as their loan is active. This is because, just as liability coverage provides protection for other vehicles on the road, comprehensive and collision coverage provides protection for your own vehicle. If your vehicle is damaged or stolen, it is this coverage option that will cover your loss.
Uninsured And Underinsured Motorist
As is the case with all laws, there are people who choose to break the laws regarding the need to carry auto insurance. In the unfortunate event that you are involved in an accident with an individual who does not have insurance, you could find yourself needing to cover the total cost of repairing or replacing your vehicle even if you were not at fault for causing the accident. In this situation, having uninsured motorist coverage will allow you to file a claim with your own insurance company to cover your out-of-pocket expenses.
This coverage can also be quite useful if you are involved in an accident with someone who carries only the minimum amount of insurance coverage required by law. In the event that this coverage is not enough to pay for the damage to your vehicle or to cover your medical expenses, underinsured motorist coverage will be able to cover the remaining expenses.
If you need more information about auto insurance, call a company like The Lofrumento Agency, Inc.