This is basic car insurance coverage. Every state, except for New Hampshire, requires drivers to carry at least this type of coverage. It compensates the other driver for loss when the driver is at fault of the accident. However, there are different types of liability coverage amounts. Generally, this type of policy offers compensation for property damage, vehicle damage, or personal injury in the event of a collision, and drivers carry a policy that meets their states regulated amount of coverage. Note: liability insurance only pays for damages caused to the other vehicle.
Here is an insurance policy that pays for damages to the other party as well as any damage to the insured party’s property, car or any medical bills incurred by the accident. Insurance policies of this type come at a higher monthly premium for consumers than liability insurance. Because of this cost, consumers should consider foregoing this type of coverage if their car is more than ten years old. The reason: often the price paid in collision coverage is higher than the overall value of the vehicle.
Here is an insurance policy that offers compensation for any type of collision, or for any type of unforeseen event. For instance, it offers coverage for flooding, hail damage, theft, vandalism, fire and just about any other type of damage that could ever occur to the insured car. Comprehensive insurance is ideal for new car or recent model car owners, especially when the owners live in areas that are prone to natural disasters such as hail, lightning, rain, hurricane or tornadoes.
Personal Injury Coverage
Accidents come in varying types; some are extremely bad where people in the vehicles are severely hurt and require hospitalization. In some cases, medical issues continue throughout the person’s life, which are a result of the accident. In a worse case scenario, even death can occur in an accident. When the personal injury needs exceed those of any other type of car insurance coverage limit a driver might already have, personal injury protection will kick in, if the policy holder has this type of protection. Personal-injury protection covers medical expenses that might occur as a result of an accident, to anyone that was in the collision. In cases where consumers are already substantially covered through their existing health insurance plan, there is no need for this coverage.
Gap Insurance Coverage
Consumers who are still making payments on their cars may want to consider Gap insurance. This is coverage which will pay off outstanding car balances when there is an accident.