While buying auto insurance seems like a no-brainer, knowing what to get is a different story. While your Farmers Union Insurance agent can help talk you through what your options are, having some prior knowledge is always helpful.
So, what are some different kinds of car insurance?
Liability insurance: Liability insurance is insurance that pays another person’s damage when you are liable for an accident. This is the minimum coverage, that you are required to carry in most states.
Comprehensive insurance: this covers the repair or replacement of a vehicle that’s damaged caused by things like hail damage, a tree falling on your car, hitting a deer, theft, or fire to name a few.
Personal Injury Protection: this is sometimes called no-fault coverage, which covers the medical expenses of the automobile operators and their passengers.
Collision coverage: this coverage picks up where comprehensive leaves off. This covers the cost of repairs when you caused by a direct peril of a collision with items other than animals.
Uninsured motorist coverage: it is possible that you are involved in an accident with someone who doesn’t have insurance. This provides bodily injury coverage in the case of a none insured motorist or hit and run. Underinsured motorist coverage applies when the accident you were in results in a bodily injury and the responsible parties liability limits are lower than those on your policy.
These are just a few of the different types of auto insurance policies. Be sure to talk with your FUI agent to see which one is right for you. Next week, we will talk about how much car insurance you should have, and how much it could cost you!