Two types of auto insurance coverage you can purchase are comprehensive coverage and collision coverage, and both types are important to have. Both types are also optional unless you owe money on your car. As you prepare to update or purchase an auto insurance policy, you should understand what each type is and why it is important to have them when you own a car.
The type of coverage you need for a situation where you cause collisions and have damage to your own car is called collision coverage. Anytime you hit another car, person, or object and have collision coverage, you can file a claim for your own damages. This includes the damage to your vehicle, any medical bills you may have incurred, and other types of damages you may have lost. Without it, you would receive nothing for accidents you cause.
Comprehensive coverage is similar, yet it is also very different. The purpose of comprehensive coverage is for you to have coverage for damages you may encounter from things other than accidents involving other cars or objects. Comprehensive instead covers your own damages when you are involved in accidents with animals, for example, and it also covers damage your car may encounter from storms. If your area gets flooded or hit by a huge hail storm, it is your comprehensive insurance that would provide you with compensation. This form of insurance also covers damages and losses from vandalism to your car and trees falling on it.
Other types of coverage you might want to include
Additionally, there are more types of auto insurance coverage options you can choose. Liability coverage is a type that is included in any policy you purchase, and it covers other people and their cars. You can also add on insurance to cover accidents that people cause when they have no insurance or very little insurance, and these types are called uninsured and underinsured motorist coverages.
A lot of people also like to add on roadside assistance coverage for times when they need help with vehicle issues, such as a flat tire or dead battery. Roadside assistance also covers times when you run out of gas or experience any problem with your car that makes it unable to drive.
If you know what types of coverage you need, you can call an agent to set up a policy, but if you have questions about the types you need, you can still call an agent to find out the answers to your questions.
For more information, conatact a local car insurance provider.