Determining the best type of car insurance can be extremely overwhelming. How do you choose which type is best for you? MVP is here to educate you on your different options, so you can decide which one is best for your specific situation.
The three common types of car insurance
Before choosing insurance coverage, it’s important to know all of your options and what they mean. The three common types of car insurance include:
- Liability
- Collision
- Comprehensive
Liability
Liability insurance covers the other party’s accident expenses, but it does not cover the policyholder’s expenses. This coverage is the bare minimum you should have and is required in nearly every state to drive legally.
Collision
Collision insurance pays to repair or replace the policyholder’s vehicle after an accident, regardless of who is at fault. If you lease or finance a vehicle, you will be required to have collision coverage. If you can’t afford to repair or replace your vehicle if it’s unexpectedly damaged, this is definitely a policy you should consider.
Comprehensive
Comprehensive insurance pays for damage to the policyholder’s vehicle that is caused by something other than an accident such as vandalism. Similar to collision insurance, this is required for those who lease or finance a vehicle. Again, if you can’t afford to pay for unexpected vehicle damage, we recommend having this type of coverage.
These insurance types are the three most common, but you absolutely have more options! For instance, if you don’t have standard health insurance (which we recommend that everyone have), Med Pay can help cover medical expenses for you and your passengers after an accident. This can protect you against hefty medical bills.
Another option is Uninsured Motorist Coverage. Uninsured Motorist Coverage, pays for bodily injury damages to you, members of your family who live with you, and other people riding in your car who are injured by:
- An uninsured motorist
- A hit-and-run motorist
- An insured motorist who does not have enough liability insurance to pay for bodily injury damages to any insured person
Uninsured Motorist Coverage also protects you and family members who live with you while riding in any vehicle or while a pedestrian.
Not only is choosing the best policy important, but choosing the right insurance company is, too. You should choose someone who is looking out for your best interest! At MVP Insurance, we think long-term, and we take care of customers like they are family. If you have any questions or need guidance, we would love to help!