3 Essential Car Insurance Policies You Should Know About

Being in a car accident can bring significant stress, especially if you lack proper auto insurance. Fox Business notes that statistically, you’ll likely file a collision claim roughly once every 18 years, making it crucial to ensure adequate coverage for your vehicle. Here are three types of auto insurance worth considering:

• Third-Party Liability-Only Coverage: Required by the Motor Vehicles Act for all U.S. road-traveling vehicles, this insurance should match the associated risk or driving conditions. It’s essential to ensure sufficient coverage to avoid personal out-of-pocket expenses in case of an incident. This type covers repairs for third-party vehicle damage, as well as medical expenses and liabilities resulting from injuries or fatalities.
• Collision Damage Coverage: Also referred to as own damage coverage, this policy handles repair costs for your vehicle following an accident. The coverage amount is determined by factors such as the car’s age and its insured declared value, typically based on its market worth. When making a claim, the insurer calculates the maximum payout by deducting accumulated depreciation from the vehicle’s market value. Collision coverage is particularly vital for financed vehicles.
• Comprehensive Coverage: Protecting against theft, natural disasters like hail or fire, and vandalism, comprehensive insurance assists with repair or replacement costs for covered perils. However, it comes with a deductible, requiring you to pay a set amount out-of-pocket before the insurer covers a claim.

Selecting the appropriate insurance coverage is crucial to ensure your vehicle’s protection in case of unforeseen events. If you’re in search of the best auto insurance for your needs, feel free to reach out to us today.