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The Different Types of Car Insurance: What You Need to Know

Have you ever found yourself in a position where you’re in an accident or the other driver may blame you for the accident? But no one can corroborate what happened because you were traveling alone. This can be a scary thing to think about, and that’s why you need to find the right type of car insurance.

Knowing what to look for isn’t easy, and we’re here to help. Read on to learn about the different types of car insurance out there and what can best fit your needs.

Liability Insurance

Liability insurance covers damage that is caused to another person’s car or property when you are at fault in an accident. In the case of an accident, if you are liable, it can help to protect you from having to pay for someone else’s property damage. It will also help to protect you against any injury liability claims that result from an accident.

Liability insurance is a great way to make sure that you won’t be financially responsible for any damages that you might cause during an accident. When considering car insurance, liability insurance should always be part of the plan.

Collision Insurance

Collision insurance covers the damage to your car when you collide with another car or object. This type of insurance is important for the safety of your car in the event of an accident. It helps pay for the repair or replacement of your car if it is damaged in a collision.

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Also, it helps cover the medical expenses of other people involved in the accident if you are at fault. It also pays for towing and storage fees that you may have to pay as a result of the accident.

Collision insurance is a great investment. It will give you peace of mind when driving in the event of an unexpected collision.

Comprehensive Insurance

Comprehensive insurance is a must-have insurance to cover any damage that you may sustain to your vehicle, which is not the result of a collision. Examples include theft, fire, falling objects, damage from hitting an animal, or even natural disasters such as a tornado or hurricanes. This type of insurance also covers repair costs associated with replacing broken glass, like windshields, in your car.

Personal Injury Protection

Personal injury protection (PIP) is a type of car insurance coverage that is legally required in some states. This coverage provides financial protection in the event of a motor vehicle accident. This is because it covers medical expenses for you and any passengers you have in your car.

This can cover not only any medical treatment that’s needed for the injuries but can also provide additional benefits. This includes lost wages and funeral expenses. It’s important to know what type of coverage is required in your state and if PIP is one of them, you must make sure you are sufficiently covered.

Uninsured Motorist Insurance

Uninsured Motorist Insurance is a type of car insurance that many drivers should consider adding to their policy if they do not already have it. This type of insurance covers the damage caused by an uninsured driver who hits you. This can help you in the event of an unexpected accident.

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In states that need this type of coverage, it is a legal requirement to carry the extra coverage to make certain that if an uninsured driver hits you, you are not solely responsible for the damages. It assures you of knowing that your insurance will pay for any damages that the other driver causes.

Underinsured Motorist Insurance

This insurance covers the damage caused by a driver who has insufficient insurance coverage to pay for the damages they caused. As a result, if there is an accident and the other driver does not have enough coverage to pay for your vehicle’s damages as well as any medical costs, this insurance will kick in.

This coverage can be beneficial if you’re involved in an accident with a driver who does not have a lot of money or if the other driver is acting negligently and underinsured. Having this coverage in place will enable you to be adequately protected and give you peace of mind as you drive.

Gap Insurance

Gap insurance covers the difference between the value of your car and the amount you owe on your car loan if your car is totaled in an accident. This can be incredibly important to have, as car values decrease over time, while loan amounts remain the same.

If your car is totaled, the insurance company is likely only going to pay out the current market value of the car, which could leave you with a financial burden if you still owe more money than the car is worth. This is why gap insurance can be so important to have. It will cover the difference between the market value of your car and the total amount of your loan, allowing you to pay off the loan without having to come out of pocket.

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Roadside Assistance Insurance

Roadside assistance insurance is a type of car insurance you must have. It provides help if your car breaks down on the road such as towing or jumpstarting the battery. Generally, it also covers flat tires, keys locked in the car, running out of gasoline, broken windshields, dead batteries, and others. Having roadside assistance insurance is beneficial since it avoids the inconveniences that come with needing assistance while on the road like stress and fear. 

So if you are ready to get one of the mentioned insurances, visit a reliable website like caleyinsurance.com and get started. Having insurance will give you peace of mind while on the road.

Types of Car Insurance You Need to Know About

Car insurance is a key element of owning a car. It is important to know the different types of car insurance so you can decide what is right for you. Take the time to shop around and compare policies so that you can get the best coverage and rates.

Get a free quote today to start protecting your vehicle and yourself!

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