What Are Common Types of Car Insurance?
Having the right coverages on your policy — with the right coverage limits — is key to safeguarding your finances. Almost every state requires a minimum amount of auto insurance, but you’ll want to consider raising those coverage limits and adding optional coverages to your policy for a wider net of protection.
So what are the main components of a car insurance policy?
If your vehicle is damaged, collision coverage helps cover the cost to repair or replace it.
In the event your vehicle is damaged by an external event that is out of your control, like theft, vandalism, hitting an animal or hail damage, you’ll depend on your comprehensive coverage to help you recover.
Bodily injury liability
This coverage handles costs associated with injuries to those involved in the accident, including pedestrians or bystanders. Think medical expenses, legal fees, lost income, pain and suffering and bereavement.
Property damage liability
If you’re at fault in an accident, this coverage helps repair or replace the vehicle or property, like a mailbox, fence or home that was damaged.
Uninsured and underinsured motorist coverage
This coverage protects you financially if you’re in an accident with an at-fault driver with no liability insurance, or who has minimal liability insurance but it’s not enough to cover all of your bills after an accident.
These are the most common types of coverage that make up a policy, but your coverages shouldn’t stop here. Customizing your policy to fit your exact needs — and worries — is one of the best ways to gain peace of mind whether on the road or parked in your driveway.
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How Long Does a Car Accident Affect Your Insurance?
How long an accident affects your car insurance policy depends on the state you live in. But on average, you can expect the surcharge to remain 3 to 5 years.