Popular Types of Auto Insurance Coverage
Most drivers comply with the law and purchase insurance before they get behind the wheel of their auto or truck.
However, if you ask them specifically what their policy says, they probably won't be able to tell you.
For instance, what does full coverage mean? Does the policy pay for all damages to your car as well as the person you hit? Does it pay for all medical expenses for you and the other driver? Does the policy cover your passengers, too? Most motorists can't answer these questions without referring to their policy.
All of this is usually taken for granted until you actually need to know.
Vehicle insurance laws are made at the state level and nearly all states in America require some kind of motorist insurance to cover damage done to the other driver.
No state requires motorists to have auto insurance to pay for damage to their own auto, truck or van.
Minimum coverage is called liability auto insurance.
Comprehensive vehicle insurance is designed to handle expenses generated from non traffic related damage, such as what mother nature might inflict upon you.
For instance, comprehensive coverage kicks in if mother nature decides to drop a tree on your truck, van or SUV, or a tornado decides to play football with your new smart auto two seater.
Comprehensive will kick in if you hit a deer.
Technically, that is a collision, however colliding with Bambi is sometimes unavoidable, and therefore a risk assumed by insurers.
Collision coverage covers exactly what it says, smashups against everything except an animal, and you have comprehensive insurance for that.
Collision is usually twice as expensive as comprehensive insurance and nearly always comes with higher deductibles.
Because of this, many drivers choose not to purchase collision coverage.
That may be a good thing if your vehicle is an older model.
But if you took out a loan to buy the truck or van, then the bank will force you to have collision insurance.
The best way to find the right type of insurance is to shop around, first.
Jump on the internet, do a search for insurance quotes.
Then compare them side by side to find the best deal for you and your family.
However, if you ask them specifically what their policy says, they probably won't be able to tell you.
For instance, what does full coverage mean? Does the policy pay for all damages to your car as well as the person you hit? Does it pay for all medical expenses for you and the other driver? Does the policy cover your passengers, too? Most motorists can't answer these questions without referring to their policy.
All of this is usually taken for granted until you actually need to know.
Vehicle insurance laws are made at the state level and nearly all states in America require some kind of motorist insurance to cover damage done to the other driver.
No state requires motorists to have auto insurance to pay for damage to their own auto, truck or van.
Minimum coverage is called liability auto insurance.
Comprehensive vehicle insurance is designed to handle expenses generated from non traffic related damage, such as what mother nature might inflict upon you.
For instance, comprehensive coverage kicks in if mother nature decides to drop a tree on your truck, van or SUV, or a tornado decides to play football with your new smart auto two seater.
Comprehensive will kick in if you hit a deer.
Technically, that is a collision, however colliding with Bambi is sometimes unavoidable, and therefore a risk assumed by insurers.
Collision coverage covers exactly what it says, smashups against everything except an animal, and you have comprehensive insurance for that.
Collision is usually twice as expensive as comprehensive insurance and nearly always comes with higher deductibles.
Because of this, many drivers choose not to purchase collision coverage.
That may be a good thing if your vehicle is an older model.
But if you took out a loan to buy the truck or van, then the bank will force you to have collision insurance.
The best way to find the right type of insurance is to shop around, first.
Jump on the internet, do a search for insurance quotes.
Then compare them side by side to find the best deal for you and your family.
