The Different Types of Auto insurance Coverage
When you start thinking about the various types of car insurance coverage, it can become overwhelming. How do you know what type you need? Does your state need it? Is there any way to save money and still have the right amount of insurance? Below we detail the different types of car insurance coverage, and provide some options that you can benefit from, adding non-essential insurance from your policy, and some tips to save some money based on your vehicle and budget.
Type explanation of car insurance coverage
You may wish to consider some optional car insurance. If your car is damaged in an accident, your no-fault insurance will not pay for the repair. If your car is parked correctly and is hit by another car, the insurance for the other car will cover your repair costs. In addition to this situation, the only auto insurance that pays for car repair costs is collision and full coverage.
This type of car insurance can cover repair costs when the car is damaged in a car accident. Collision insurance is usually sold with deductibles. Deductible is the amount you agree to pay for repairs before the insurance company intervenes and pays the rest. The greater the deductible, the lower the cost of collision insurance.
There are three basic collision insurance options: