Best Auto Insurance

Auto Insurance
With the exception of Wisconsin and New Hampshire, drivers in all states need some form of auto insurance in order to legally be on the roads. In addition to being a legal responsibility, auto insurance is also a social responsibility so other drivers have a financial recourse in the event of an accident.


Types of Auto Insurance Coverage
There are basically six types of auto insurance coverage included with most policies. Some of these are required, but others are optional depending on the various state laws. Bodily injury liability and property damage liability are two types of coverage that are required in most states because it provides financial protection for others in case you damage their property or cause bodily harm to them. Many times, this type of coverage also pays your legal bills if you are the one that caused the accident.

Collision and comprehensive coverage are two more types of coverage offered on most basic auto insurance policies. The collision aspect of this coverage is the part that pays for repairs to your own vehicle after an accident. Or, if your car is damaged too much, the insurance company will often provide the cash value of the vehicle rather than fix it. The comprehensive aspect of this coverage is for damages that happened for reasons other than an accident, such as fire, theft, natural disasters or vandalism. Comprehensive coverage often covers windshield cracks, too.

Personal Injury Protection and MedPay are types of coverage that are used to pay for medical bills, bodily injury and even funeral expenses as the result of an accident. This type of insurance is only required in about 16 states, but it's often unnecessary if you have medical coverage already.

Uninsured or underinsured motorists (UM and UIM) coverage covers a driver if they are struck by another driver that is uninsured or underinsured. This type of coverage is also used in the event of a hit-and-run accident. UM coverage is required for drivers in most states, but UIM is only required in a few states.

Different Types of Auto Insurance Coverage
Although there are six basic types of coverage included with most auto insurance policies, you can also get some extra coverage that makes things easier in case of an accident. For instance, you can get coverage that reimburses you for a rental car if your car gets damaged or stolen. You can also get coverage that pays for towing and labor charges in case your car breaks down on the road. There is also gap insurance that basically pays off your car if you are still making payments on it and it gets totaled.

With auto insurance, coverage requirement differ from state to state. It's important to know your state's requirements before getting behind the wheel of a car. Talk to your insurance agent and make sure you have the required amount of coverage. It's not only a responsibility you have to yourself, it's a responsibility you have toward your fellow drivers.