brier June 24, 2013 No Comments

Are you getting the most out of your
car insurance?

With all of the distractions out there
today it seems like car accidents are on the rise. People are very
distracted by mobile devices and accidents caused by the use of them
while operating a motor vehicle are on the rise. No matter how many
states keep passing laws to try and curb the use of them it seems
that the amount of accidents and fender benders just continue to
accumulate. With this going on it is a good time to review your auto
insurance policy and make sure you have the right coverage for your
travels and vehicle.

To start we can briefly go over the 7
types of car insurance out there to get an idea of what covers what
to help you plan accordingly for your needs.

  1. Liability Insurance: This is the
    bare minimum, almost all states require this. In the event you are
    in an accident and found at fault, liability insurance will cover
    the cost of repairing what you damaged in the accident and this also
    covers medical bills.

  2. Collision Insurance: This will
    cover your vehicle and person in the event of a crash. Most states
    do not require this. If you have a leased or financed car though
    you will be required to have this also until you pay off the car and
    personally own it. If you have an older car this may not be worth
    it either as sometimes it costs more than the car is worth to fix.

  3. Comprehensive: Liability and
    collision only cover things that are damaged because of a car
    accident, if you want protection against weather, vandalism, theft
    or other unexpected occurrences you will also want to add
    comprehensive insurance.

  4. Uninsured Motorist Protection:
    This will cover you in the event you are in a crash with someone who
    does not have insurance. For a better explanation of this please
    refer to our past blog about Uninsured Motorist Protection

  5. Personal Injury/Medical: This
    will cover medical costs to you no matter who is at fault. Medical
    bills can pile up after an accident so it is good to consider this.

  6. No-Fault Insurance: This is
    currently only available in select states so check to see if your
    state offers this before doing to much research. This will cover
    damage and injuries no matter who is at fault in the event of an
    accident.

  7. Gap Insurance: If your car is
    leased or financed this will cover the remainder of payments you
    have in the event your car is totaled. It is very worthwhile if you
    owe more on the car than you could get for it if you sold it today,
    most insurance policies only cover the value of the car, not what
    you owe.