But to make the best decisions about purchasing other types of car indemnity coverage you might need, you ’ ll want to understand what ’ second covered, what ’ s not covered and what ’ s optional. In addition to understanding types of coverage, you ’ ll besides want to consider coverage amounts .
Why ? Because state-required minimums may not cover the costs of a good accident, so it ’ second worth considering purchasing higher levels of coverage .
here ’ s a summation of the types of coverage available—some are required ; others are optional ; all are priced individually ( a lanthanum menu ) to let you customize coverage amounts to suit your claim needs and budget.
closely every state requires car owners to carry the trace car indebtedness coverage :
- Bodily Injury Liability — This covers costs associated with injuries and death that you or another driver causes while driving your car.
- Property Damage Liability — This coverage will reimburse others for damage that you or another driver operating your car causes to another vehicle or other property, such as a fence, building or utility pole.
Frequently required coverage
many states require that you carry the succeed coverage :
- Medical Payments or Personal Injury Protection (PIP) — Provides reimbursement for medical expenses for injuries to you or your passengers. It will also cover lost wages and other related expenses.
- Uninsured Motorist Coverage — Reimburses you when an accident is caused by an uninsured motorist—or in the case of a hit-and-run. You can also purchase under insured motorist coverage, which will cover costs when another driver lacks adequate coverage to pay the costs of a serious accident.
even if these types of coverage are optional in your state, consider adding them to your policy for greater fiscal protection.
While basic, legally mandated car insurance covers the price of damages to early vehicles that you cause while driving, it does not cover damage to your own cable car. To cover this, you need to purchase the follow optional car policy coverages :
- Collision — This optional coverage reimburses you for damage to your car that occurs as a result of a collision with another vehicle or other object—e.g., a tree or guardrail—when you’re at fault. While collision coverage will not reimburse you for mechanical failure or normal wear-and-tear on your car, it will cover damage from potholes or from rolling your car.
- Comprehensive — This provides coverage against theft and damage caused by an incident other than a collision, such as fire, flood, vandalism, hail, falling rocks or trees and other hazards—even getting hit by an asteroid!
- Glass Coverage — Windshield damage is common, and some auto policies include no-deductible glass coverage, which also includes side windows, rear windows and glass sunroofs. Or you can buy supplemental glass coverage.
Mind the gap… insurance
If you lease or finance your vehicle, car dealers or lenders will likely require you to purchase collision and comprehensive. But keep in mind that collision and comprehensive examination entirely cover the market value of your car, not what you paid for it—and new cars deprecate cursorily. If your cable car is totaled or stolen, there may be a “ gap ” between what you owe on the vehicle and your policy coverage. To cover this, you may want to look into purchasing gap insurance to pay the difference. ( note : For leased vehicles, opening coverage is normally rolled into your lease payments. )
Who is covered—and when?
Your car policy will cover you and other family members on your policy, whether driving your insure car or person else ’ randomness car with license. Your policy besides provides coverage if person not on your policy is driving your car with your consent .
Your personal car policy only covers personal drive, whether you ’ rhenium commutation to work, running errands or taking a tripper. Your personal car policy, however, will not provide coverage if you use your cable car for commercial purposes—for exemplify, if you deliver pizzas or operate a delivery service. note, besides, that personal car insurance will by and large not provide coverage if you use your car to provide exile to others through a ride-sharing military service such as Uber or Lyft. Some car insurers, however, are nowadays offering auxiliary policy products ( at extra cost ) that extend coverage for vehicle owners providing ride-sharing services .
Learn More: Check out this handy infographic on the types of required and optional drivers indemnity coverages .