We get a lot of email requests from our readers that we should do more blog posts related to finance, auto insurance and the like for gents who are just starting out in their careers or just getting their first automobiles or, looking to invest their first $100 into the market. In this article we will cover the 7 types of auto insurance coverage you should consider when applying for car insurance.
Why should you consider this? well for starters, auto insurance companies require you go have a minimum bodily injury liability on your policy. If your actions are found to be the cause of any accident, this covers the cost of injuries and even death that may be caused to someone else. Be sure that you have a sufficient amount of coverage and proper deductible for this part of your policy. As this should go without mention that if something like this were to ever happen, the bill could be extremely high if you had to foot the bill yourself.
If you think only cars get damaged, think again. If you are involved in an accident and you damage property, you better have some deep pockets or property damage insurance through your auto insurance carrier. If your actions are found to be the cause of an accident, this will help cover property damage to fences, grass, posts etc… Often the state minimum coverage amounts are not enough in an accident.
3. Personal Injury Protection (PIP)
PIP insurance will cover the treatment of your passenger’s injuries. In many cases, it can also cover things like lost wages, and the cost of helping the passenger perform day to day duties that the injury prevents them from doing. This is what is known as a “no-fault” coverage, as this is paid whether the driver is found to be the cause of the accident or not.
4. Collision Coverage
Should you hit another car or even lose control of your vehicle on a slick road and hit a tree or pole, this type of coverage would kick in and help pay for the repairs.
This type of auto insurance is used in the event that damage caused is not caused by a collision. Situations like fire, flooding, theft and hitting an animal would be covered on this type of policy addition.
6. Uninsured Motorist
If the other party in the accident does not have insurance, uninsured motorist coverage can be a life saver. This can also be used in instances where you are a victim of a hit-and-run driver. Last thing you want is to foot the bill and your insurance premiums go higher because of this.
7. Towing & Rental Car
Most policies offer a towing and rental car reimbursement add-on. This is one of the things you rarely consider until you are in an accident or have a vehicle breakdown. This coverage can be a valuable piece of mind for you and your family as well so it would be wise to consider this option as well.