Auto Insurance
We all know we should have auto insurance for our cars. Not all states require you to have Auto Liability Insurance, but most do. Check with your state to ensure requirements. Coverage for your car can vary depending on many things in your auto insurance policy.
Types of Auto Insurance:
- Liability
- Collision
- Comprehensive
- Full Coverage
- Uninsured Motorist Coverage
You could hold liability alone for your auto insurance, but all that will do is cover the other party or objects in the event of an at fault accident. This will be up to a c
ertain limit determined in your auto insurance quote. Liability coverage is available either as a combined single limit policy, or as a split limit policy. A combined single limit combines property damage liability coverage and bodily injury coverage under one single combined limit. A split limit liability coverage policy splits the coverage’s into property damage coverage and bodily injury coverage.
Collision auto insurance provides the driver of vehicle coverage on the insured automobile. In most cases this will be subject to a deductable. Collision auto insurance is not a requirement, but is usually a good idea if you have a vehicle with a high value or financed. Most finance companies will require you to provide this type of auto insurance to get the financing.
Comprehensive auto insurance is a coverage provided to take care of your expenses in the event your automobile gets damaged in harsh weather, fire, theft, or even vandalism.
Full coverage auto insurance will combine this coverage’s to ensure maximum protection. Full coverage auto insurance doesn’t mean that you are always covered 100%. There is always a maximum. Review your insurance policy to review coverage limits.
Uninsured motorist coverage is often times a great idea. Imagine getting plowed by someone in their junk car, and they hit your brand new BMW. They are not holding any insurance, and they obviously don’t have the money to pay for your repairs. Who is going to pay? Your auto insurance policy will cover you.
