Not sure, which type of auto insurance coverage you should purchase? The first step is to be well informed before the purchase of an insurance policy. Here are helpful tips to understanding the different types of insurance coverage.
According to an article at money.howstuffworks.com, “Which Coverage is Best”
“Most states only require liability insurance, which covers the costs of anyone who’s injured or dies as a result of a car crash you caused, plus damage to their vehicle, any property damage and legal fees. But consider these additional types of coverage as well:
Collision. This covers repairs to your car after an accident, no matter whose fault it was. You generally have to pony up for the deductible, which is a set amount of money you agreed to pay before the insurance company kicks in the remainder. Collision coverage is important — but only if your car is newer. Let’s say you have an older car worth $3,000 and collision coverage that costs $200 per year with a $1,000 deductible. If your car gets totaled, you’d collect $2,000 after paying the $1,000 deductible. That’s not a great payback. But if you have a newer car worth $30,000, you’d collect $29,000 after paying the $1,000 deductible. That’s more like it!
Comprehensive. Comprehensive pays for damage to your vehicle from non-crash incidents, such as fire, vandalism, acts of nature and theft. This coverage normally carries a deductible, too. As with collision coverage, whether or not it’s wise to purchase comprehensive depends on the value of your car; you can find out what that value is by looking at an online guide such as the NADA Guides at www.nadaguides.com.” To read the entire article click here.