Auto Insurance 

Types of Auto Insurance

 

One Policy Doesn’t Fit All

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When it comes to car insurance, understanding the various types of coverage available can help you make the right choices for your needs. Here’s a breakdown of some of the key options:

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• Collision Coverage: This policy covers the damage to your car when you are at fault in an accident. However, it does not cover the damage to other vehicles or property, only your own vehicle.

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• Bodily Injury Liability (BIL): If you cause an accident and someone is injured, BIL covers their medical expenses. The policy is often described in terms like 20/50 or 100/300. The number on the left is the maximum the policy will pay for a single person’s injuries, and the number on the right is the total payout for all injuries caused by the accident.

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• Property Damage Liability: This type of coverage pays for any damage you cause to other vehicles or property in an accident, such as fences or buildings.

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• Uninsured/Underinsured Motorist Coverage: If you're hit by a driver who doesn’t have enough insurance or has no insurance at all, this coverage helps cover your medical bills and repair costs.

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• Comprehensive Car Insurance: This policy provides coverage for non-collision-related incidents, such as theft, vandalism, fire, or damage caused by natural disasters like hail or flooding.
   

Before sitting down with an agent, it’s important to know what each type of coverage entails. That way, you can be sure you’re selecting the right options for your vehicle, budget, and needs.

Although the list of coverage options may seem overwhelming, a knowledgeable auto insurance agent can guide you through the process and help simplify your choices.

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How Much Auto Insurance Do You Need?
 

While no driver wants to risk being underinsured, paying more than necessary is also a concern. Auto insurance professionals suggest ensuring your coverage equals the value of your total assets such as your home, vehicle, savings, and investments. In addition, all drivers should review essential coverage types:
 

• Uninsured/Underinsured Motorist Coverage: Since you can’t control whether another driver carries sufficient insurance, this coverage helps protect you from unexpected expenses.
   

• Collision and Comprehensive Coverage: Especially important given the rising cost of vehicles, these coverages help protect your investment from accidents, theft, or other damages.
   

Meet with a helpful auto insurance agent at Eternity Insurance Agency to create a customized policy that fits your individual needs and your budget.