Auto insurance protects you from many financial upsets while driving and owning a vehicle. It also assists in paying medical and legal expenses if you are involved in an accident.
Most states require drivers to have a certain amount of insurance. However, coverages vary by state and are based on various factors, including your past driving record.
Liability Coverage
Liability coverage also called "bodily injury" or "property damage" pays for other people's medical bills, recovery treatments, and lost wages if you cause an accident. It may also cover funeral costs if you're responsible for a fatal crash.
Almost all states require drivers to carry some form of liability insurance. State laws determine minimum policy limits, but most insurance professionals recommend purchasing higher liability limits than your state's minimum to protect your assets if you are part of an accident that results in severe injury or property damage.
Collision Coverage
Collision insurance reimburses you for repairs if your vehicle is damaged in an accident. This type of coverage is often added as an extension to a basic automobile policy. For example, auto insurance Woodbridge VA can help you cover damage caused by potholes, accidents involving an inanimate object (like a tree or pole), or when another vehicle hits your car.
It is often required by lenders or auto financing companies. It is a good idea to purchase collision coverage because it can pay for significant repairs and replacement of your car after an accident. It can also protect against loss if the vehicle is totaled or stolen.
Uninsured Motorist Coverage
In addition to liability coverage, uninsured motorist (UM) coverage protects you in an accident caused by a driver without auto insurance or insufficient coverage to cover your expenses. In some states, UM also covers injuries to passengers in your vehicle and pedestrians if an uninsured driver hits them.
UM, coverage can help you with bodily injury, medical expenses, missed earnings are examples of costs., pain and suffering for you and your passengers, and funeral expenses in some cases. It may also help you with property damage, such as repairs to your car and fences or other personal property damaged in a crash.
You can "stack" your UM coverage in some states to increase your available money. For example, if you have two cars insured under different policies, each with $15,000 in uninsured motorist coverage, you could have $30,000 available to file a claim.
Comprehensive Coverage
Comprehensive coverage protects your vehicle from non-collision-related damages like fire, natural disasters, and vandalism. This coverage is typically purchased along with collision and liability car insurance as part of full coverage auto insurance.
It's also a good choice if you drive a new or high-value car or live in an area with much weather-related damage. If you have comprehensive coverage, it will reimburse you for repairing or replacing your vehicle if it's damaged.
This coverage is often subject to a deductible, which you'll pay out of pocket before your insurer pays for damages. In general, you should select a deductible equal to or less than the value of your vehicle. That way, you'll have enough savings to pay for a replacement car in the event of an accident.
