The key to buying automobile insurance is to become informed on what type of coverage you are required to carry and then what additional coverage you’d like to add to your policy.
The two types of auto insurance all states require car owners to carry are bodily injury and property damage. These requirements help ensure all drivers can pay for damages or injury caused by the vehicle they are driving.
Beyond required car insurance, collision is a popular option. Collision pays for damages to your car in case of an accident – either with another vehicle, an object or just loss of control that leads to damages. Collision insurance comes with a deductible that must be paid before insurance kicks in, and a typical deductible will range from $250 to $1000. The higher the premium paid on the auto insurance, the lower the deductible. If you are not at fault in the accident, you might even get your deductible covered by the driver who was found at fault.
Comprehensive coverage adds anther layer of protection beyond required liability and collision. Comprehensive auto insurance covers damages or loss caused by something beyond an accident with another car or an object. This type of loss can come from a number of sources such as fire, falling objects, hail, flood, vandalism, missiles, explosion, riot, striking an animal, earthquake or windstorm. Comprehensive also covers glass breakage such as a cracked windshield. Comprehensive auto insurance is typically sold with a deductible, similar to collision.
