When it comes to choosing the right car insurance plan, you’ll want to be sure that you’re getting the best bang for your buck. It can cause someone quite the confusion when trying to figure out which plan is right for them, whether it be liability, collision, or comprehensive. By understanding the key differences, as well as the advantages and disadvantages of each particular plan, you’ll be able to determine which car insurance coverage is best for you.
The cheapest, yet least protective, car insurance available is liability insurance. This form of insurance is required by law, as a bare minimum, to protect other people from damage caused by the vehicle that you’re driving. The injured party’s medical expenses will be paid along with any lost wages or reimbursements for vehicular damage that occur, up to the dollar limit of the insurance coverage you purchase. This basic insurance plan does not provide you with monetary compensation if your car is damaged or totaled when you’re at fault, which can be a major issue if an accident occurs. Liability insurance is often a good choice for an older car that holds little value since it can be replaced at a much lower cost.
Collision insurance covers damage to your car that results from a motor vehicle accident. This includes vehicle repairs, or reimbursements if the car is totaled, and can help get you back on the road as soon as possible. Collision insurance also protects you, along with the property owner, when property damage occurs as a result of the accident. This includes reimbursement for damages caused when an accident involves a tree, home, fence, or other property. Another great feature that comes with your collision insurance plan is the vehicle replacement provision. This provision covers replacement of your totaled car with a vehicle of equal or similar value, or it can serve as a down payment, based on your car’s worth, toward a new car.
Comprehensive insurance is a valuable insurance plan that offers you extended coverage not found with limited liability or collision insurance. This coverage is often purchased in conjunction with collision insurance to give you added protection that covers vandalism, broken auto glass, damage from a falling object and more. It can cover your vehicle if it has been destroyed during a natural disaster or if it has been stolen. With comprehensive insurance coverage, you can rest easy knowing that when it’s combined with liability and collision insurance, you’ll be completely covered for almost any situation.
Choosing The Right Coverage For You
Once you fully understand the coverage options available, you’ll feel confident knowing that you’ve made the right choice when choosing your insurance plan. Depending on the value of your car, and the amount of coverage you’re interested in, you should choose the highest option possible that you can comfortably afford. This allows you to breathe easy in the event that an accident occurs, since you’ll have an car insurance plan that can cover your specific needs.
Sam Fenton is a professional insurance agency representative. He blogs about a variety of insurance-related subjects and enjoys helping homeowners get the best deal possible. Here is a link to home insurance quotes www.insurancetown.com.