Car insurance is one of those things you can’t live without.
If you own a car, you legally need to have car insurance. The problem is, car insurance has skyrocketed over the last 10 years, increasing by about 30% in that timespan. For that amount of money, you need to make sure you’re properly covered against damage, theft, and accidents.
To get the best auto insurance policy, you need to understand the different types of auto insurance. In this post, we’re going to tell you the 3 types of car insurance that you need to know. Keep reading and you’ll be able to ensure your coverage is as good as it can be before you get behind the wheel.
1. Liability
Liability insurance is required in almost every state, as it insures you in the event of damage to another person’s property. When you’re the at-fault party in an accident, having liability insurance pays for the other party’s expenses.
There are two components to liability coverage: property damage and bodily injury. Property damage liability insurance covers the costs of their damaged vehicle, while bodily injury covers any medical expenses that are incurred.
Texas law requires you to have $30,000 of liability coverage. If you don’t have any, you could be in for a hefty fine. You can go here to get the best auto insurance rates in the state of Texas.
2. Collision
When you purchase collision insurance, you’re looking out for your own interests, as well as those of the other party. It’s in place to cover the expenses that you incur in the event of an accident. It’ll pay to repair or replace your vehicle.
Unlike liability insurance, collision insurance isn’t required, so long as you actually own your vehicle.
3. Comprehensive
Since accidents aren’t the only way your car could get damaged, it may be smart to purchase a comprehensive insurance policy as well. This covers the policyholder’s expenses in the event that damage is sustained from falling tree branches, hail, animals, or theft and vandalism.
Again, this is only required if you’re leasing or financing your car. When you own it outright, you don’t need comprehensive insurance, but it’s always a smart idea to consider it.
Understanding What Different Types of Auto Insurance Bring to the Table
Now that you have a better understanding of the 3 main types of auto insurance, you can speak to different companies and get the best policy for your needs. Insurance can feel like a real unnecessary expense, but you really never know what could happen with your vehicle.
As long as you’ve got liability insurance, you’ll never have to worry about paying out of pocket for damages to another person’s car. Ignoring the other types of car insurance, however, could end up costing you a lot of money in the end. Consider collision and comprehensive insurance and you can rest easy knowing anything and everything will be covered with your car.
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