Car Insurance Facts for Beginners
Buying a car isn’t cheap, and unfortunately, neither are repairs. For that reason, it is a good idea to do proper research before taking out car insurance for the first time. With many different types of cover available, it can be hard to decide what you really need, and what you can afford to leave. As appealing as it may sound to go for the cheapest policy, spending a little more may prove worthwhile if you seriously injure another person or your car gets totaled.
Common Auto Insurance Cover Types
Liability Coverage
In most states, you’ll need to have both bodily injury and property damage cover. If you cause an accident and someone is hurt, bodily injury coverage may assist you in paying for legal expenses, medical bills, and lost income. Property damage coverage will cover the cost of damages to another person’s property.
Personal Injury Protection
This type of auto insurance cover will help pay your deductible and medical expenses that surpass the limits of your health insurance if you sustain injuries in a motor vehicle accident. You may also be covered for missed income during your recovery.
Medical Payment Cover
This type of auto insurance coverage will also assist you in paying for post-accident medical expenditures. It differs from personal injury coverage in that it also extends coverage to passengers or family members driving your vehicle at the time of the accident. Some policies include coverage for you and your family for pedestrian accidents or accidents in other cars.
Collision Cover
This policy helps pay for expenses needed for repairing or replacing your vehicle following a collision with another vehicle or with an object.
Comprehensive Cover
For damage unrelated to car accidents, comprehensive coverage is needed. It pays for non-accident damage caused by anything from fallen objects to theft.
GAP Cover
GAP coverage can assist you with payments that exceed the fair market value paid out by your insurer if a financed car has been totaled or lost due to theft.
