Car insurance can be your savior when an accident happens. Nonetheless, not all types provide the same coverage. So, which one is the best?
Let’s get straight to the point – there is no definite answer to the question of what car insurance coverage is the best. In most cases, it depends. For instance, it can depend on your budget and needs. The most important is to understand how one is different from the other, so you can pick the most suitable coverage for your situation.
Below, we’ll have a rundown of the most common types of coverage you might want to consider.
Depending on where you live, liability coverage can be mandatory insurance. Hence, it’s one of the best types of coverage if it is legally mandated in your state. Otherwise, you will be driving illegally and might get in trouble with the authorities.
If you are responsible for the injury of another person or damage to someone’s property, liability insurance can help. It covers both medical and legal fees. Hence, if you are sued for an accident, your liability insurance might also pay for a personal injury lawyer.
In case of an accident with another car, collision coverage can help. It can also pay for the damages when you hit a physical object, such as a fence or a pole. In most cases, it is optional. However, if you are leasing a vehicle, you might be required to have this coverage. Take note, however, that it does not cover paying medical bills or damages to the vehicle of another person.
Aside from leased vehicles, this can also be a great choice if you have not yet paid for your vehicle. It can provide you with peace of mind as it can cover repair and replacement in case of collision damage.
If your car is damaged by causes other than a collision, your comprehensive coverage can help pay for the expenses. Those who are looking for an act of God insurance might want to look at comprehensive coverage. It can pay for damages caused by acts of God, such as tornadoes and floods.
More so, it can also cover vehicle theft, vandalism, and falling objects. Even civil disturbances, such as riots, can be covered by this type of car insurance.
Medical Payment Coverage
According to the World Health Organization, 20 to 50 million people experience non-fatal injuries annually because of road traffic crashes. It can result in high medical expenses, which can put a strain on your financial resources. If you are looking for a safety net, medical payment coverage can help.
As the name implies, medical payment coverage will pay for medical expenses for you and your passengers, regardless of who is at fault. It is often optional coverage, but it can be a good option for those who want to save on medical bills.
Bodily Injury Liability
Do not confuse bodily injury liability with medical payments coverage. It can cover payment for medical expenses, but only for the injured party. Meaning, it does not include the medical expenses for yourself.
It should be noted that bodily injury is one of the components of liability coverage, which was discussed earlier. The other component is personal damage liability, which can pay for any damage you cause to the property of another person when driving.
Choosing the Best Type of Coverage
Now that you are familiar with the different types of coverage, here are some essential considerations to help you choose the most appropriate for your needs or situation:
Where You Live
One of the first things to do is to determine what the laws in your state specify. Such will give you a good idea of the minimum coverage that the law requires.
Determine how much you can spend on car insurance as you pick the right coverage. If you’re on a budget, look for potential car insurance discounts, such as bundling it with another insurance or getting a discount for good driver behavior.
Age of Your Car
If you have an old car, collision and comprehensive coverage may be unnecessary. This is especially the case if you believe you can afford the repair or replacement of an old vehicle. However, liability coverage might be necessary, since it is a legal requirement in many states.
Mode of Ownership
Those who are leasing or financing their cars might need the mandatory coverage that the company requires. For instance, some companies might require gap insurance. It can pay for the difference between your car’s actual cash value and the unpaid balance on the lease or loan.
Wrapping up, there is no best type of car insurance coverage. It depends on many factors, such as your location and the age of your car. At the minimum, however, you will need liability coverage if it is a legal requirement to drive in your state.
Joe lives and breathes cars and trucks. After many years working in the Auto industry, he decided that it is only right to share his knowledge with the public. As a qualified expert in trucks and cars, he started working for Truckile.com and is the main editor and publisher.