All car insurance policies are not equal, and understanding what is in your policy could mean the difference between putting an accident behind you and finding yourself deeply in debt. You need to know what your policy covers, both for people you may injure in an accident and for you and your car.
Liability Insurance – Liability insurance is required in one form or another throughout the United States. A typical policy includes personal injury liability to protect people who are injured by you, and property damage liability to pay for repairs someone elseâ€™s car or property.
Personal Injury Protection – PIP insurance is used to pay the insured personâ€™s medical bills immediately after an accident. Even if you are not at fault, your PIP insurance will cover the medical bills, and then the insurance company will seek restitution from the at-fault party.
Collision Coverage – This type of insurance is usually optional and is used to pay for damages to your vehicle if you are at fault or there is no identifiable fault, such as a hit and run accident. If you cannot afford you auto coverage, collision coverage is one area that can be reduced or eliminated.
Comprehensive Coverage – This type of insurance is used to pay for everything else that could go wrong. It includes window and windshield replacement, car theft, vandalism and personal property.
Towing and Roadside Service – These two coverages are optional. Read your policy closely to find out whether the towing is a reimbursement or will pay for the service as part of the claim.
Shop with online insurance quote websites to customize a policy to include only what you need. Once you have tailored a policy that suits your needs, the site will compare quotes with numerous insurance providers and allow you to find out who has the best price on your custom policy.