Car Insurance You Should Have

Should Have Car Insurance

Collision Insurance - Making sure the other guy is covered is one thing but what if you would like your car fixed if you are at fault in an accident. That is where collision takes over. Typically required only when you are financing a car it is none the less a good idea to have collision coverage if your vehicle still has much value. You will usually need to choose a "deductible" level which means the amount that is your responsibility before your insurance takes over. A $1000 deductible means you will be reimbursed the fair market value of your car less $1000. The higher the deductible amount the less your collision coverage will cost.

Comprehensive Insurance - Like collision insurance comprehensive covers your vehicle but does so when there is no "at fault" person such as when a tree falls on your car or there is a severe storm, fire, etc... You need to carefully read your comprehensive policy as there may be certain "acts of god" that are not covered such as flood or hurricane. Comprehensive is not required by any state but is a good idea and like collision also pays the fair market value for your vehicle.

Underinsured/Uninsured Insurance - Even though liability insurance is required by almost every state there are still many occasions when another driver will choose not to obey the law or will have the minimum coverage which will not fully cover your injuries. This type of insurance is not required but is a very good idea to have protecting you.