Of course, you know you need car insurance. In fact, liability insurance is required by law in all 50 states. But with all the different options available, how do you choose the right kind of coverage for your vehicle?
Here’s a quick look at the various types of coverage available:
Liability – covers damage only to the other driver’s vehicle when you are at fault in an accident
Collision – covers damage to your own vehicle, whether or not you are responsible for the accident
Comprehensive – covers non-collision damage to your own vehicle (such as theft or hail damage)
Full Coverage – includes all of the above, plus peace of mind. (If you are financing your vehicle, the lien holder may required full coverage as a term in your loan or lease agreement.)
Choosing the right insurance coverage depends on your coverage goal. Do you simply want the minimum coverage required by law or do you want to properly protect your property against loss? The answer to that question will drive your decisions.
Unless you can afford to go out and pay cash for repairs or a new vehicle, most experts recommend full coverage. Why gamble with your means of transportation? The security offered by full coverage is almost certain to outweigh the cost for the added insurance.