Coverage Options Available When Purchasing Car Insurance
When purchasing car insurance, there are a lot of decisions to be made. There are many different coverage options, ranging from liability only all the way to full coverage and everything in between. Here we take a quick look at the most common insurance options and why people purchase this insurance.
Auto Liability Insurance is mandated by each state
One decision you don’t have to make is whether or not to purchase auto liability insurance. Every state requires you to have at least a minimal amount of liability insurance to make sure you don’t cause an accident that you cannot financially reconcile. The minimum liability limits vary by state, but most of them are at least sufficient enough to cover minor fender benders and minor hospital bills.
Comprehensive Coverage is an excellent option
After liability coverage, one of the most common types of insurance is comprehensive insurance. Comprehensive coverage protects the insured’s car from any sort of damage that is unrelated to a collision. The coverage is very extensive, and will insure damage caused by wind, hail, theft, vandalism, tornado, and much more.
Collision Coverage goes hand-in-hand with comprehensive coverage
Collision coverage is often purchase together with comprehensive coverage. Collision coverage provides similar protection as comprehensive coverage in that it is designed to protect the insured’s vehicle. Collision coverage, however, insures the vehicle from collision-related damage rather than non-collision related damage. The type of collision is immaterial; it will insure collisions with all types of vehicles and structures
Personal Injury Protection
Personal injury protection, often referred to as pip, is a coverage option that is actually required by many of the states across the country. The exact purpose of Personal Injury Protection varies slightly from state to state, but for the most part pip insures the passengers inside the vehicle for medical expenses and for work loss expenses. Many states require Personal Injury Protection coverage to mitigate the need for car crash lawsuits. Whether or not your state requires it, pip is a good coverage to have to protect the passengers in the car.
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