Understanding Your Auto Insurance Options

Auto insurance is a safety net that is needed to protect yourself financially. Most people know that they need auto insurance, but they are not sure what kind of coverage is needed. Continue reading to learn more about the different auto insurance options that are available:

Liability

Almost all states require drivers to carry liability auto insurance. This type of insurance covers the cost of a person's medical costs and repairing or replacing a vehicle if you are at fault for a car accident. When you purchase liability coverage, you will see two numbers: the  amount of bodily injury coverage and the amount of property damage coverage.

Each state has their own laws about the minimum amounts of coverage that you must have for your liability auto insurance. But buying the state minimum may not always be the best idea. If the cost of medical bills and property damage exceeds the amount of your policy, you will be held financially liable. For that reason, it is often to buy a liability policy that provides ample financial protection.

Collision

If you cause an accident and your vehicle is damaged or totaled, your insurance company will not help you financially if you only have a liability policy. Adding collision coverage to your auto insurance will ensure that your vehicle will be repaired or replaced even if you caused the accident. It is especially important to carry collision coverage if you drive a valuable vehicle.

Comprehensive

When you own an automobile, it is always a good idea to have comprehensive auto insurance coverage. This type of auto insurance protects you financially in the event that your vehicle is stolen or vandalized. Comprehensive auto insurance will also cover the costs of repairs or replacement if your vehicle is damaged in a natural disaster or due to severe weather.

Uninsured/Under-insured Motorists

A major auto accident can cause severe injuries and damage to your personal belongings. In the event that the accident was caused by someone who is uninsured or under-insured, you could be left in a bad place financially and your only recourse may be to try to sue the person who caused the accident personally, if they have any assets. Buying uninsured or under-insured motorist coverage will protect you from this type of scenario so you can rest assured that all of your bills will be paid no matter what the other driver's insurance circumstances are. 

For more information about auto insurance, check out sites like http://www.coastcompins.com.