Understanding the Different Types of Car Insurance
Car insurance is required by law in most areas, so if you own a car, coverage isn’t optional. However, there are several kinds of car insurance available, so while you can’t decide to be uninsured, you can choose the level and type of coverage that works best for your budget and car. Here is what you need to know about the different types of car insurance.
In most states, liability coverage is the kind of car insurance that you are required to have. Liability coverage pays for property damage and medical expenses incurred by other people that are caused by an accident that is your fault. This kind of coverage doesn’t help you cover any of your expenses after such an accident, but it does ensure that you are not personally on the hook for paying the costs of other drivers. Most states have a minimum requirement for liability coverage, but it is usually a good idea to get more than the minimum if you can, so you don’t have to worry about large bills for someone else’s damage or injuries in the event of an accident.
Collision coverage pays benefits to cover the costs of damage to your vehicle in an accident. Often, states don’t require collision coverage, since it covers your costs and not other drivers’ expenses, but it is usually beneficial, so you aren’t out-of-pocket in the case of an accident. Some drivers decide to forgo collision coverage if they have an old car that is worth less than the coverage costs.
What would happen if your car was stolen or if it was damaged by severe weather? That is where comprehensive coverage comes in. It pays out for damages that are not caused by an accident.
State Farm Insurance – Debbie Aragon Insurance can help you find the right level of coverage for your specific needs. For more information about insurance in Steamboat Springs, CO, call (970) 879-1756.