Owning a car comes with certain responsibilities. The owners should be ready to show that they are qualified to drive a car by getting a driver’s license. Also, they have to take up any financial responsibility that comes in the process of using their cars. For this reason, every state has come up with certain requirements to measure the financial responsibility of their drivers. One of these requirements is an active car insurance policy. Suppose you are a homeowner in San Angelo looking for where to get the best insurance plans around, you can easily check out this page at San Angelo Pronto Insurance — cheap car insurance in Texas, TX.
How Much Car Insurance Do You Need?
Every state has a set auto insurance coverage limit expected for every car owner and driver in the state to purchase. These minimum auto liability limits determine how much a car owner can get from an insurance company in case of an accident.
Unfortunately, these minimum auto liability limits are inadequate in many cases and won’t offer all needed coverage. Thankfully, there are several options available for anyone looking to raise these minimum auto liability limits. To learn more about this, make sure to speak to your insurance broker.
Types of Car Insurance You Need
For people planning to purchase auto insurance, it is important to know that there are various types of coverage to choose from. Having the basic knowledge of the main types of auto insurance available will help you come up with a great insurance policy that will satisfy your specific needs.
Meanwhile, listed below are some of the major auto insurance schemes needed by a driver.
Liability Insurance
Liability auto insurance is designed to compensate accident victims for injuries or damaged properties in the cause of a car accident. It is also structured to cover the car owner’s legal defense in case the victim decides to press charges and take the case to court. In the United States, every state requires car owners to purchase liability car insurance, except for the state of Virginia and New Hampshire. Notwithstanding, in certain conditions, both states require liability requirements.
Medical Payments
Medical payments coverage, usually referred to as MedPay, is another important auto insurance required for car owners. In the case of an accident, MedPay covers the hospital bills and other medical expenses for both the victim and the offender, irrespective of who was at fault. MedPay is compulsory in some states like Pennsylvania, New Hampshire, and Maine, however, some other states do not require car owners to have MedPay.
Uninsured Motorist Insurance
Uninsured motorist insurance and underinsured motorist insurance are designed to cover the medical bill of an accident victim if the offender does not have liability insurance at all or if it’s not enough. Although it is an important auto insurance policy, most states don’t require a driver to have it. Nevertheless, it is great auto coverage to have, as it covers the medical bills for both you and your passengers when the person that crashes into you don’t have liability insurance. It also covers pain and suffering claims, car damage expenses, and even funeral expenses.
Personal injury protection
Personal injury protection is one insurance that is required by most states, although its rules vary across states. It covers the medical expenses for you and your passengers irrespective of who committed the offense. It also covers other expenses such as the victims’ lost wages, car repairs, funeral expenses, and injury claims. Personal injury protection is compulsory in some states, while some other states list it as optional insurance coverage.
Collision and Comprehensive Insurance
Collision and comprehensive insurance cover car repair bills in case of an accident. It also provides coverage for cases like vandalism, car theft, collisions with animals, fires, falling objects, hail damage, and floods that involve your car.
Optional Car Insurance Coverage Types
Gap Insurance
Gap insurance covers your car loan in a situation whereby your car is totaled or stolen. It covers whatever difference is left from what you owe and the actual cash value of the car.
Roadside Assistance Insurance
Roadside assistance insurance pays for the services of a tow car, locksmith, jump-start, or fuel delivery in case of an emergency.
Rental Reimbursement Insurance
In case your car is damaged and under repair, rental reimbursement insurance pays for a substitute means of transportation such as a rental car during the repairs.
