Auto Insurance 101

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We deal with different types of insurance all day, every day. Because of this, we sometimes forget that not everyone understands the different coverages and what they mean to you when you’re purchasing your insurance.

There are a lot of different factors that can affect your purchase of car insurance. Decisions are often based on which policy will serve you best while costing the least amount of money. What people sometimes don’t understand is that car insurance is made up with several different lines of coverage.

Here is a breakdown of what each coverage is to help make your decision a little easier.

Bodily Injury– This is what covers you, or someone driving your car, in the case of injury that happens to the other person in an accident. The proper liability insurance is essential because it helps cover the cost of having to go to court or pay damages if the accident is your fault. Most states require liability insurance before hitting the road, but experts recommend insuring yourself for more than the state required minimum

Uninsured and Underinsured Motorist– Uninsured motorist coverage compensates you if you are involved in an accident with an uninsured motorist. Underinsured reimburses you if the driver at fault has an amount of insurance insufficient to compensate you for a total loss. Both coverages make sure that you get taken care of, even if the other person in the accident wasn’t as responsible as you when it comes to insurance.

Medical Payments or Personal Injury Protection – This will pay the hospital, medical bills and/or lost wages incurred by the driver, or passengers, resulting from an accident.

Property Damage Liability– This is what pays for the damage that you’ve caused to someone else’s automobile or property.

Collision– While collision coverage isn’t mandatory when purchasing your auto insurance policy, this is the coverage that reimburses you for damage to your car that results from an accident. Collision coverage typically has a deductible that you pay up front for repairs.

Comprehensive– This is the coverage that handles anything else that could happen your car: whether it be theft or natural disasters such as fire, earthquakes, falling objects or even being hit by an animal like a deer, or ever more common in Roseville, overly territorial turkeys. Like collision, comprehensive coverage is not mandatory and usually comes with a small deductible.

Ultimately, deciding what insurance you choose comes down to what coverage you need for your vehicle and your driving habits. Now that you understand the different lines of coverage, you can make a more informed decision when it comes to purchasing your auto insurance.