Gain a Better Understanding of the Basics

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The better you understand the various policies, the better your insurance decisions will be. In what follows, we'll explain the basics of a policy.

Liability & Medical Protection

The first component of your plan is liability and medical protection. There are three coverage types that fall under this category:

  • Liability. As you get your estimates, bear in mind that most states require certain levels of liability coverage to drive legally. This falls into two subcategories: bodily injury liability and property damage liability. Bodily injury shelters you from damages resulting from injuries or death caused by an accident that is your fault. Property damage shelters you from bills when you damage another driver's property in an accident that is your fault.
  • Medical payments. This will help you pay for necessary medical expenses after an accident. People looking for an affordable plan might consider eliminating this element because it is probably unnecessary if you have a good medical plan.
  • Uninsured motorist. This pays for you and your passengers' injuries in the event that you are hit by an uninsured or underinsured motorist.

Vehicle Protection

As you shop for affordable premiums, you will also need to include elements in your plan that look after your vehicle. Such elements include:

  • Collision. If you are involved in a covered accident, this option will help protect you from repair costs for your vehicle. It will help you pay to repair or replace your car after an accident.
  • Comprehensive. Any non-collision-related damage that happens to your car is usually protected by comprehensive coverage. This shelters you from damages such as weather-related events, animals, theft, vandalism, falling objects, fire, etc.

Additional Considerations

You may wish to include other add-ons in your policy when looking for a plan. Add-ons might include rental reimbursement, stereo/audio equipment protection, towing and labor costs coverage, etc. Still have questions that have not been answered? Check out our frequently asked questions.