Understanding Insurance Issues

Auto Insurance Basics

Before taking out an insurance cover for your vehicle, you must understand what you are getting yourself into. Different insurance companies will have a different approach to how they explain your car insurance. It is better if you go in with some knowledge at hand.

State law mandates a basic auto insurance package. This covers the cost needed if you or someone using your car causes harm to another person or damages their car or property. Besides the basics, there are other additions you might need to make to your insurance policy, as explained below.

Required Coverage

Besides your general insurance, the state might require you to have additional covers. Uninsured motorist coverage is one of them. This policy pays you back when an uninsured motorist causes an accident. It also comes into play when a hit-and-run happens, and you have no one to sue for damages done to your vehicle or your body.

Personal injury protection is yet another required coverage. This option offers reimbursement for all medical costs incurred due to an accident. It also includes passengers in your car at the time of the accident and any wages lost at the time you are in the hospital.

Optional Covers

The mandated coverage takes care of damages to other vehicles and people caught up in the accident. In order to have your car fully insured, you will need to add a few other optional policies. The most common of these is the comprehensive cover. This option offers compensation for damages to your car due to fire, vandalism, natural hazards, and even theft. It, however, does not offer coverage for damages that occur due to a collision.

Another policy you might need to consider is collision coverage. This compensates where your comprehensive cover may be lacking. It reimburses you for damage to your car due to a collision. The best part is, the collision does not need to be with another car; it could be with a tree, guardrail, a deer on the road, and so on. It also goes a step further to cover you for car damage due to poor roads and damage due to the car rolling.

Finally, you can add glass coverage to your general insurance. Replacing a broken windshield without insurance can put quite a dent in your pocket. This option offers reimbursement for glass damage, including damage to the side and rear windows.