Going Beyond The Legal Requirement: 3 Types Of Auto Insurance You Will Want To Consider
Currently, nearly every state in the country requires vehicle owners to carry auto insurance. However, this legal requirement only pertains to the need to carry liability insurance. While this is an important part of ensuring you do not suffer financial hardship in the event another driver causes an accident that damages your vehicle or results in injuries, choosing to purchase only liability insurance could leave you unprotected in a variety of other situations. That is why you should consider adding the following three types of auto insurance to your policy:
Collision & Comprehension Auto Insurance Coverage
Collision and comprehensive auto insurance coverage are also commonly referred to as full coverage. This is because this type of auto insurance covers nearly all of the perils that are not covered by liability insurance. For instance, your collision coverage covers the cost of vehicle repairs and medical bills after an accident if you are found to be at fault for that accident. Comprehensive coverage covers loss due to theft and severe weather. Comprehensive coverage also provides you with coverage for damage to your auto glass.
Uninsured/Underinsured Motorist Coverage
When your car is damaged as a result of an accident, you would typically seek to recover damages through the other driver's liability coverage if they are at fault, or through your own collision coverage if you are at fault. The problem occurs if the other driver does not have insurance as required by law or if their insurance policy does not offer a large enough benefit to cover all of the costs resulting from your accident. In these situations, you will need to have uninsured/underinsured motorist coverage. This type of coverage provides you with a third option for recovering damages. This third option is to file a claim with your own insurance company.
Rental Car Coverage
If your vehicle needs to spend more than a single day in the shop in order to get repaired, you could find that the cost of renting a car quickly outweighs the costs associated with repairing your car. This is especially true during peak season when rental car rates have a tendency to skyrocket. The need to cover these costs out of your own pocket can put a rather sizable dent in your rainy-day account. Adding rental car coverage to your auto insurance policy is a very affordable way to avoid these significant costs and ensure that you are prepared in the event of unexpected auto repairs.
Contact an auto insurance company near you to learn more.
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