Every car needs insurance, but with so many different types of coverage available, you might be struggling to decide which is best for you and your car.
It can be hard to work out how much is car insurance on average, but there’s no need to panic, as all you need is some time to understand what each type of coverage is, how much is costs and why it can benefit your car.
In light of this, we’ve put together a few explanations of some of the different types of coverage you can get in your insurance policy, so you’re well-versed in what your car needs.
What are the different types of coverage you need?
To help you find the right policy, here are the different types of coverage available, and how they can benefit your driving:
1) Liability Coverage
For most states, this is the minimum level of coverage you’re required to have for your car, to legally drive on the road. With this type of coverage, there are two parts to it.
- Bodily injury liability coverage – This covers any medical bills for someone else you injure, who’s not a passenger in your car.
- Property damage liability coverage – This will cover the cost of any damage to someone else’s car or property, to repair or replace it.
Liability coverage doesn’t provide any coverage for you, but is there to cover any third-party damages you may cause when driving. This is why it’s the legal minimum requirement.
2) Collison Coverage
This coverage is there to cover any damages to your car if you’re involved in an accident – this can be a collision with another vehicle, or an object of some sort, for instance.
This type of coverage is most important when the responsibility for the accident falls on you, not another person. For example, you’ll need collision coverage if youwere to reverse into a parked car, or hit the sidewalk whilst driving, causingdamage to your own car.
It will cover the cost of any repairs or replacement parts needed for your car.
3) Comprehensive Coverage
This type of insurance is often referred to as “act of God” coverage, since it covers you for any damages resulting from incidents other than an accident.
Essentially, this coverage is for things which might be out of your control. For example, your car could be stolen or vandalized, you might have a collision with an animal, or a tree could fall on your parked car.
4) Temporary Transportation Coverage
Certain providers can offer the great benefit of temporary transportation coverage. This means if your car is being repaired and you still need to travel, like towork, your insurance can cover the costs.
This doesn’t necessarily mean a rental car, but let’s say you take the train or an Uber to work, this will be included in your temporary transportation coverage.
5) Extended Glass Coverage
Another rare, yet beneficial coverage type, is extended glass coverage. This covers you for any damages to your windshield, so you can get It replaced with little, to no deductible.
For example, this could be damages from a collision or a crack that forms from rocks hitting your car on the highway.
Now you know the different types of coverage available, you should be one step closer to securing the best coverage for you and your car.