Types of Car Insurance

Navigating through the maze of insurance options that you have can sometimes be tricky, especially if you’re not aware of the different kinds of car insurance. This article will provide you with critical guidance as you consider the coverage types that are most appropriate for you and your individual circumstances.

Liability – This coverage is required by most states, including Texas that proves that you meet financial responsibility requirements for owning and operating a vehicle in the state. This coverage will pay claims arising from an accident deemed to be your fault. Liability coverage will pay for injuries suffered by the driver and occupants of the other vehicle, repair or replacement costs for the other vehicle(s) as well as compensating the owners of any property damaged as a result of the accident up to the limitations imposed by the policy. While the Department of Insurance sets legal minimum coverage amounts, it is possible to purchase additional coverage.

Collision – This coverage will pay for physical damages to your vehicle in a covered accident. This coverage can considerably increase your auto insurance premiums, although there are ways to reduce these costs. Increasing the deductible that you must pay before your insurance company will begin paying repair or replacement costs is an effective strategy for reducing premium amounts. Before opting to increase these amounts it is a good idea to check with the lender that financed your vehicle purchase to ensure that it doesn’t violate your loan agreement. If you own your vehicle “free and clear” and your vehicle is more than five years old, you might wish to consider dropping this coverage.

Comprehensive – While a collision can quickly damage your vehicle, incidents unrelated to driving can also cause expensive damages. Whether from a storm, flooding, and the theft of insured items in your vehicle – or even a vindictive vandal – repair expenses can be very costly. To help mitigate your financial exposure to some of these risks, comprehensive coverage can be an effective tool to help you recover from any potential losses.

Uninsured/Underinsured coverage – This coverage can be extremely helpful in the event that you are involved in a collision with an individual who has no insurance coverage or whose insurance is inadequate to compensate you for your loss. Uninsured and underinsured motorist claims – for injuries suffered by you and any passengers in your car as well as repair or replacement costs for your vehicle – are paid by your insurance company.

Other coverage available – There is other insurance coverage available to compensate you for a variety of losses. Many of these options are available as riders on your main auto insurance policy and include things such as:

* Gap insurance
* High Performance Parts
* Roadside Assistance
* Towing
* Rental reimbursement

Depending on your circumstances you might opt to purchase some or all of these optional policy provisions. While they all carry a premium cost, in many cases the cost is nominal and can help you to obtain well-rounded insurance coverage to meet your individual needs.

Knowing the different kinds of car insurance that are available can help you to secure your financial future by protecting against potential losses. Putting this coverage in place is a simple process beginning with a free, no-obligation rate quote that will quickly give you multiple quotes from which to choose the best, most economical auto insurance policy.