You’re legally required to have an insurance policy on any vehicle that you drive. However, the minimum requirement in your state may not offer enough coverage to truly protect you and your vehicle. Take a look at some of the aspects of an insurance policy that you should make sure you have on your car to avoid being financially responsible for damages after an accident.
Minimum Requirements
Every state has its own minimum requirements for vehicle insurance coverage, so it’s important to make sure you have least that much coverage within your policy. You can review the minimums, as well as lookup average rates based on zip codes, level of coverage, and age.
Your state may also have unique laws that apply to auto insurance, so take a look at these requirements before you purchase a policy as well. Some of these laws include:
- Tort system, which means that someone is determined to be at fault in every accident.
- No-fault system, which eliminates finding fault in accidents.
- “No pay, no play” laws, which eliminate compensation for any damages that result from an accident for an uninsured driver.
Liability
Liability insurance covers you when you are liable for an accident or found to be at fault. States require all drivers to have liability coverage, but it may not be the best option to only have this type of coverage on your vehicle. If you get into an accident that you are liable for, your insurance policy will cover damages to the other involved party but will not pay for any damages to your vehicle. Liability coverage is split into bodily injury and property damage.
Collision
Collision coverage is similar to liability coverage, although it’s more extensive. This type of insurance policy covers any collision, other than with an animal. It will pay for damage to both the other involved vehicle or vehicles and your vehicle after an accident. Collision insurance will kick in if you crash into another car or if you hit a tree, pothole, telephone pole, or another object. Although it’s not necessarily required, it can offer an extra level of protection that you won’t get if your policy only includes liability coverage.
Comprehensive
A comprehensive insurance policy also includes coverage for any situation other than an accident with another vehicle. Some examples include vandalism, theft, falling trees, weather damage, accidents involving animals, damage to the windshield or other glass, fire damage, and rocks or objects that fall off or are kicked up by other cars. A comprehensive policy will protect your vehicle in situations that are beyond your control. If you have a loan or lease on your vehicle, the lender may require you to have comprehensive coverage on the policy.
Now that you understand the different types of vehicle insurance and why they’re important, you can start shopping for a car that will be covered under your new policy. Visit Jim McKay Chevrolet to shop the selection of high-quality new and pre-owned vehicles today.
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