Choosing More Coverage

Posted on: 11 July 2018

When was the last time you really sat down and took a good look at your auto insurance coverage? More than likely, you have a general idea of the type of coverage you have, but do you really understand what all these different types of coverage and protection actually mean? By being better educated on auto insurance and common types of coverage, you can make better informed decisions regarding your policy.

Bodily Injury and Property Damage Protection

This is the very basic form of protection that all drivers across all 50 states are required to carry. The specific coverage amounts required by each state can vary, but bodily injury and property damage protection are the very minimum that you should have at all times. Specifically, this type of coverage is designed to protect you if you injure or kill somebody else in an accident, and/or if you damage the property of another person/entity.

Collision and Comprehensive Coverage

If you have a vehicle that is currently being financed (that means you're still making payments on it), you're also required to carry collision and comprehensive coverage. You can also opt for this coverage on your own accord, even if your vehicle is paid off. The purpose of this coverage is to protect you from expenses related to your car being damaged in an accident or by another act, such as vandalism or inclement weather.

Uninsured/Underinsured Motorist Coverage

Some states also require drivers to carry uninsured/underinsured motorist coverage, but even if yours doesn't, it's a good idea to have this type of coverage in place. Specifically, this protects you if you get into an accident or are otherwise injured by a driver who either doesn't carry insurance or doesn't carry enough to cover your related medical or property damage expenses.

Rental Car Reimbursement Coverage

Rental care reimbursement coverage is never required, but generally recommended. Not only does it typically only add a few dollars to your monthly auto insurance payment, but it can give you much needed peace of mind and protection if your vehicle ever needs to be in the shop for repairs, especially for an extended period of time. In this case, your coverage will kick in and pay for a rental car so you still have a means of getting around until the repairs on your car are complete.

Now that you have a better understanding of common types of car insurance coverage, do you have enough protection on your policy?