Insurance for an automobile is designed to protect the automobile owner and those who may be in an accident with the owner of a vehicle. There are basic types of auto insurance that are required in each state. There are also additional coverages that may be purchased to provide additional protection.
Liability coverage is required in order to drive a vehicle in all 50 states. Some states require a low level of liability coverage while other states require a driver to carry a higher amount of coverage.
Liability insurance covers the owner of a vehicle if the owner is determined to be at fault in an accident. This coverage pays for the other driver’s car to be repaired. It also pays for the other driver’s medical bills if he is injured in an accident
Another type of auto insurance coverage that is optional is collision coverage. This type of insurance covers the repairs of the policyholder’s vehicle if the policyholder is at fault in an accident or is involved in a single-car accident.
Collision coverage will have a deductible such as $500. This is the out-of-pocket amount the policyholder will need to pay to have his car repaired.
Comprehensive coverage is another optional but important coverage. This will cover the policyholder in the event of vandalism, theft, hail damage and animal strikes. There will be a deductible with comprehensive coverage just as there is with collision coverage.
Many people have rental coverage as part of their auto policy. This provides a set dollar amount of coverage per day while the vehicle is in the shop due to a covered loss.
Roadside assistance is available with almost all auto policies. Roadside assistance covers the vehicle if it is involved in a roadside breakdown. The coverage provides for jump starts, towing and lockout service among others.
It is important to have a sufficient amount of coverage on an auto policy. Auto repairs are expensive. If a person does not have sufficient coverage, she may be left with a large bill when an accident or another type of loss occurs.