Car insurance. In most states, it is a legal requirement that you have it.
However, that does not stop people from driving without insurance. About 13% of drivers throughout the United States do not have auto insurance.
While this can be due to legal reasons, it can also simply be because the driver can’t afford to make the insurance payments.
If you find yourself in the latter position, you may be wondering what type of auto insurance policies can work best for your budget. Well, here are a few options that you have when it comes to insurance policies.
Liability
This tends to be the minimum requirement for car insurance throughout the country. That is why it is the most important item you want to make sure that you have included in your car insurance.
What liability insurance does is cover certain expenses for the other driver if you are at fault in a car accident. This can be anything from the driver’s car repairs to their medical expenses and even personal property.
The advantage of sticking to just this type of car insurance is that it is going to be the cheapest for you when it comes to premiums. However, if you want anything on your end covered, you are going to have to purchase additional coverage.
Collision
One type of car insurance that people typically buy on top of liability is collision coverage. Going off of the above, this type of coverage allows you to be compensated for any damages that happen to your vehicle.
So, let’s say that you are at fault in a car accident. You damage not only the other person’s vehicle, but you damage your own as well. Having this coverage on your car insurance ensures that you will have the money to fix the damages or at least get the value of your car.
About 75% of Americans choose to purchase collision coverage on top of having liability car insurance.
Comprehensive
This type of coverage is good for people that may not think about the most unexpected damage that you can have to your vehicle. This is because comprehensive coverage can cover almost any type of damage that is not caused by a collision.
Let’s say that a tree falls on top of your car. This would not be a collision, so neither of the types of coverage above would be able to help you get compensation for this damage to your vehicle.
Having this gives you that extra layer of protection for the most unforeseen circumstances.
See More Auto Insurance Policies
These are just three auto insurance policies that can help you if you ever have damage to your car or cause damage to other cars. Liability allows you to get by while a collision can cover your damage and comprehensive coverage covers damage outside of collisions.
Are you ready to buy car insurance? Request a quote today for the type of plan that you want.