What Car Insurance Coverage Do I Need?

Car insurance can be confusing. What kind of coverage do you need? Is collision insurance necessary? How much liability coverage should you have? And why are they asking so many questions when you’re just trying to buy car insurance online?

General car insurance coverage

In order to get a general idea of what kind of car insurance coverage you may need, it’s good to know what type of car you have. You can check your owner’s manual for specific details about your automobile, but generally speaking

Get the right amount of liability coverage

Liability coverage protects you from legal costs and settlements in case of a car accident that injures others or causes property damage. If you’re at fault for an accident, your insurance company will pay up to your policy limit. If you cause an accident with significant damages, it’s important to have enough liability coverage to cover them. Keep in mind that if multiple cars are involved in an accident, liability coverage applies separately to each driver – so make sure you have enough coverage!

Personal injury protection and uninsured motorist coverage

If you get into an accident, PIP can help cover your medical expenses, whether you’re at fault or not. UM/UIM coverage helps pay for your injuries if you’re hit by an uninsured driver. In some states, it also covers damage to your car and property.

Underinsured motorist coverage

If you’re involved in an accident with a driver who doesn’t have enough car insurance to cover your damages, underinsured motorist coverage can protect you. Most states mandate that drivers carry at least $25,000 of bodily injury liability coverage and $50,000 for all injuries or death. If you were injured in an accident with someone who had insufficient coverage, a lawyer could seek compensation on your behalf.

Uninsured motorist property damage coverage

If you’re in an accident caused by another driver and that driver doesn’t have insurance, your uninsured motorist property damage coverage will kick in. This coverage protects you from paying for any damages to your vehicle caused by a hit-and-run driver. Uninsured motorist bodily injury coverage: If you’re in an accident caused by another driver who doesn’t have insurance, your uninsured motorist bodily injury coverage will kick in.

Types of collision coverage

Collision coverage covers damage to your car from an accident. If you have a loan or lease on your car, collision coverage is usually required. Having collision coverage can protect you from paying out of pocket for damages that are not covered by your deductible or by other types of insurance. Collision insurance will pay to repair or replace damaged parts of your vehicle.