Four Types Of Automotive Insurance
Automotive insurance is a necessary part of owning a vehicle and helps protect you from financial costs associated with experiencing a collision. However, not all types of insurance policies are the same: they will provide different types and amounts of coverage. Therefore, you should have a thorough understanding of some of the most common types of automotive insurance policies can help you choose the one that is the best fit for your needs. Keep in mind that most of these policies can be purchased in concert with each other to provide more holistic coverage than they provide on their own.
Liability insurance is one of the most common types of automotive insurance available on the market and is what most people choose for its affordability. Liability insurance will pay for the repair costs and medical expenses that you cause if you are at fault while driving. This can help protect you against paying such costs out of pocket but won't do anything about your own expenses if you're in an accident.
Collision insurance is exactly what it sounds like: an insurance policy that will pay for your financial expenses if you experience an accident for which you are not at fault. For this reason, it is most commonly purchased in tandem with liability insurance to provide protection against all types of accidents, regardless of who is at fault.
Though the name may seem like an oxymoron, uninsured insurance (sometimes called underinsured insurance) refers to automotive insurance that protects you against damages that you may experience in a collision if the other driver does not have automotive insurance, or does not have adequate insurance coverage to cover the damages to your own vehicle, or any medical expenses that you or your passengers experience as a result of the collision.
Comprehensive insurance will provide financial resources to pay for damages that your vehicle experiences while it is not driving, such as weather damage from hail, snow, ice, and excessive rain, from storm damage that knocks over trees and other large pieces of debris, or even from something as simple as a shopping cart running into the side of your vehicle in the parking lot. Comprehensive insurance, by its very nature of covering such a wide range of types of damage, tends to be one of the types of automotive insurance that is on the pricier side.
For more information, contact a company like Ahlquist Insurance.