Auto insurance policies protects against financial losses caused by an accident. It also covers medical expenses for injuries sustained in an accident. The type of policy you choose will depend on how much coverage you need, where you live, and other factors.
Comprehensive Coverage
A comprehensive policy provides more protection than a collision policy. This means that comprehensive policies cover damage to both your car and any other vehicles involved in an accident. Collision policies only protect your vehicle.
Collision Coverage Auto Insurance Policies
If you own a newer model car, you might not need comprehensive coverage. However, if you have older models, you will likely need comprehensive coverage.
Deductible Auto Insurance Policies
A deductible is an amount you pay before your insurer pays any claims. It’s usually between $100-$500 per year. You pay the first portion of your claim, and then your insurer covers the rest.
Co-payments are payments you make after your insurer has paid some of your claim. They are typically between $10-$50 per month.
Medical Payments Coverage
If you have medical payments coverage, your insurer will cover up to $1,000 of emergency care expenses incurred by you or a family member. This coverage is often included as part of your comprehensive policy.
Uninsured/Underinsured Motorist Coverage
Underinsured motorist (UM) coverage pays for injuries caused by drivers who do not have enough liability insurance to pay for damages. It also covers injuries caused by uninsured motorists.
