There are many ways you can purchase auto insurance for your vehicle. Calling a local independent insurance agency can offer you some additional benefits and personalized service as well as help you select the right coverage for your situation. It’s important to understand your coverage options since you’ll want the right coverage in the event of a claim.
Once you understand each coverage, you can have better knowledge of what options best suit your situation. Opening a discussion with one of our agents can help and we are here to provide you with professional insurance advice, guidance, and knowledge.
Let’s break down the four most common auto insurance coverages.
State minimum liability coverage: (Bodily Injury & Property Damage)
State minimum liability coverage is actually two coverages. It will pay towards bodily injury claims and property damage claims.
Every driver is required to purchase state minimum liability insurance unless you live in New Hampshire.
This typically is the least expensive auto insurance policy but it also provides you with the least amount of insurance coverage.
State minimum liability coverage will provide insurance coverage if you are involved in an at-fault car accident that results in injuring someone or causing property damage. It covers the injured person’s medical bills related to the auto insurance accident, up to your policy limits. It will also pay for repairs to the damaged property. Liability limits vary by state. If your at-fault accident causes more damage than your liability limit, you would be held accountable for the remaining balance. That’s why it is important to purchase limits higher than a state-minimum liability when you can.
If your vehicle is damaged or you are also injured in the accident, state minimum liability coverage will not provide you with any protection. It is purely for those you cause damage or injury to. You would be required to pay out-of-pocket for your medical bills & repairing your vehicle.
This coverage pays to repair or replace your vehicle if it is vandalized, damaged from a fire, stolen, collides with an animal, or is damaged by hail, a fallen tree, wind, floods, lightning, or other inclement weather.
If you are financing or leasing a vehicle, it will be required by your lender to have this coverage on your auto insurance policy.
Do you need this coverage? If you own your vehicle, it is up to you. If you value what your car is worth & prefer not to pay out-of-pocket for any damage that could occur in the event you get into an accident, you will benefit from having this coverage added to your auto insurance policy.
This coverage can pay towards repair damage (or replacement) for your vehicle if you collide with another vehicle, a guardrail, fence, or any other object.
If you have taken out a loan or are leasing a vehicle, it will be required to have collision coverage.
Do you need this coverage? If you own your vehicle, it is up to you. If you are found at fault for an accident & your vehicle is damaged, you would have to pay out-of-pocket for repairs to your vehicle if you do not have collision coverage. If you prefer to not have this financial liability, it may be worth adding collision coverage to your auto insurance policy. If your vehicle is valuable, you may also want to consider this coverage.
Talk to an agent in our office about these different auto insurance coverage options. We can provide you with quotes from many insurance carriers & help you find the best policy for your needs & budget. There are additional car insurance coverages you can add on top of liability, comprehensive & collision coverage. These coverages include Medical payments, Uninsured/Underinsured motorist, Roadside assistance, Custom parts & equipment, and many more. We’ll discuss in detail these coverage options in Part 2. Get a free car insurance quote by calling or emailing us.