Auto insurance is not only a choice, but it’s a compulsion in many states. With that, it becomes important to opt for a suitable car insurance plan to cope up with any future damage to the vehicle and your life. There is a wide variety of car insurance types and hence it sometimes becomes difficult to choose the best insurance plan.
To solve this problem, you should first know about the type of car insurance present in the market and what are their coverage plans.
Know the various auto insurance types
- Personal Injury Protection (PIP) – This insurance plan varies largely in different states, according to the law. This insurance covers all the medical expenses when the car is met with an accident and bears the expenses for both the parties. This plan is ideal for covering medical expenses for family members, drivers or passengers if they get injured in an accident.
- Liability Insurance – It includes bodily injury liability and property damage liability. As the name suggests, this insurance will cover the medical or car repair bills for others and not for you.
- Collision and comprehensive Insurance – These auto insurance are usually purchased in combination. Collision insurance becomes more important when a car is on a lease, it covers to pay for any damage caused to the car or its replacement. Comprehensive coverage mainly protects or pays for damage caused by thefts, vandalism, etc.
- Uninsured Motorist Coverage – This coverage comes in action when an uninsured auto driver injures you. It pays for your medical bills, car repairs, etc.
- MedPay Insurance – It is almost similar to PIP, but can cover deductibles and copays of other insurance plans also.
Your requirements and what you should consider while choosing an insurance plan
All the above-mentioned type of Insurance plans should be considered, but to choose the best and spend money meaningfully, one needs to identify their needs. For instance- PIP is a good insurance for those who do not possess a health insurance plan, Drivers or people who are driving a car on lease should prefer collision insurance as it protects them from the over-expense of repair if they meet with an accident.
Similarly, liability coverage should be chosen by those who want to protect their assets in future and in doubt to pay for it at the time of any bad future occurrence, Personal umbrella can be said insurance for VIPs having high net worth because they need extra protection.
There are various other insurance policies which can be opted by an individual depending upon his needs.
Always consider some factors to recognize your needs and a suitable car insurance policy. Some of them are;
- The type of your car
- Your age
- Your gender
- Marital status
- Credit Score
- Market research before choosing an insurance policy