When did you have a look at your policy properly last time? Honestly, most of us don’t look at their coverage and some of us are even scared of opening their documents. They think that it is so complicated and riddled with all sorts of foreign terms and words that they cannot understand a word. This was never the case and it is getting better. Companies are preparing their policy documents in a language most people can understand. So, have a look at them when you have a chance.
It may be helpful to better understand them if we look at the coverage in three distinct section. The first part is obviously the liabilities cover. You have to buy at least the mandatory state required liabilities coverage. And therefore you cannot actually buy a policy that doesn’t have liabilities in it. However, majority of motorists don’t buy liabilities coverage because they have to but because it makes sense.
This cover pays for any damages you may cause to other people. This would mean that the accident was your fault or it was due to your negligence. Even you weren’t driving your car you are still responsible for the damages it may cause. For example, you left it in your sloppy drive without the hand brake on and it rolled down to hit your neighbors fence, you will have to pay to mend it. It could be a lot more and you may need to pay thousands of dollars in claims against you.
There is no way that you will be keeping that kind of cash hanging around to pay for such losses. That is why you buy insurance so that your provider can step in and deal with them in your place. In a way, they make it go away for you.
Second type if for the damages you may suffer on your car. If something happens to it you will need to find the money to get it repaired. If it is stolen it means that you have lost your investment on it as well as losing the means of transport. People spend a lot of money to buy cars and they may be borrowing the money in some cases. You can have an insurance policy to cover for collision and other damages like fire, theft and natural disasters. The cover you will need for it is collision and comprehensive.
It is too big a risk to be driving a thousands of dollars worth of automobile without insuring it properly. Therefore, large numbers of policies sold in the USA would include the physical damages sustained by the insured autos. They may come under different rates like full coverage or fully comprehensive policy packages. They are widely available through most insurers.
Thirdly, you need to think about the injuries you and your family may sustain. Liabilities coverage only pays third party injuries and damages. So, you may need to buy Personal Injury Protection for your own medical bills. Check if you have another policy that will pay for such costs. If you do, you may not need to spend money again to buy other policy that cover the same thing.