Which Type of Auto Insurance Coverage is Right for You?

Auto insurance is a type of insurance available to owners of cars, trucks, recreational vehicles and other vehicles.

Auto Insurance provides insurance protection for the insured against risks involved in driving or owning a vehicle. Risks may include a car accident, damage caused to other vehicles or property, bodily injury to passengers in your car, and damage to your vehicle itself.

Optional Coverage

There are different levels of auto insurance available depending on what risks you want covered. You can cover against the costs of repairing your vehicle after an accident. You can also cover the cost of purchasing a new car if your vehicle is stolen or damaged beyond repair. These are optional coverage available to consumers who carry auto insurance.

Liability insurance is required by law for all drivers. This provides protection for the risk of claims being made against you as the driver or owner of the vehicle that caused damage to the property of another, the vehicle of another, or for medical expenses of others injured as a result of an accident, including passengers in your vehicle. If you have liability insurance, it will only cover these risks. If you have comprehensive insurance it will also provide protection for the risks to yourself and your own vehicle.

GAP Insurance

Comprehensive insurance does not fully cover your risks. First, as soon as you buy a new car its price immediately drops significantly because it is no longer new. It is used. If you were to destroy your car one day after buying it, the auto insurance company would probably determine the value of your vehicle as something less than what you paid for it, even though you may still owe much more than that in payments and financing.

To cover the chances of this happening GAP insurance was created. GAP insurance covers the difference in the actual value of your car, and the amount you still owe in auto payments.

Extra Cover

In the United States an auto insurance policy usually covers the owner of the vehicle and any others who drive the vehicle as long as they do not live at the same address. For those living at the same address who may drive your vehicle, you should have them specifically added to your insurance policy for an extra fee.

This means if you have an accident in someone else’s vehicle, while driving it with their permission, you will be covered by their policy, not your own auto insurance policy. Non-owner policies are available to cover you on other people’s vehicles, but these will only be available if you do not own your own car. Get your Free Car Insurance Quotes.