Shopping for car insurance can be frustrating and time consuming. Deciding which coverage you need is never an easy decision but it is necessary. You want to make sure you are properly covered in the event of an accident. Before you fire up the computer and start searching for auto insurance agents in Middleton, WI it is a good idea to understand the various types of coverage. Here is an overview of the different types of auto insurance available and which ones you should consider when shopping around for a new policy.
Liability Coverage – Most states require that every driver on the road have a minimum level of liability insurance. Liability insurance covers the cost of damage that you and your vehicle cause to other drivers. Bodily injury covers damage done to a person, while property liability would take care of any vehicle or property damage that is your responsibility. In almost all cases, liability insurance is the law and should be considered a must have in your insurance portfolio.
Bodily Injury Liability – This type of insurance handles the cost of injuries or deaths you cause in an accident. Coverage examples would be hospital and medical bills as well as pain and suffering and loss of income. In the event that you are the cause of a major accident you will need enough liability insurance to cover any type of judgment that could be leveled against you. Bodily Injury only covers the cost of the other victims of the accident; it doesn’t help with your medical bills. Bodily injury is
a required insurance. You should carry enough to cover a serious accident, as you will be responsible for damages not covered by your insurance.
Property Damage Liability – This type of insurance will cover the cost of damage that is done to another person’s property. This would usually refer to damage to a persons car but it can also include fences, shrubs, a house or even a tree. Property damage liability insurance is not always a requirement but it is a good idea to carry this type of coverage. Repairing a person’s car can quickly get very expensive so it is best to be protected. This type of insurance does not cover the cost of repairing your vehicle.
Comprehensive Coverage – Comprehensive covers the cost of damage to your vehicle or a vehicle that you are driving that is not caused by a collision. It covers things such as fire, floods or theft. There are often exclusions so read the policy carefully to see what is covered. This insurance is not required but should be considered. Keep your deductible high to lower your premium on this type of coverage.
Collision Coverage – As the name implies, collision covers any damage done to your vehicle due to a collision with another vehicle. This insurance covers you regardless of whether you run into someone or they run into you. If you are driving an older vehicle that has a low value you may want to skip this type of coverage. Keep your payments low by carrying a high deductible.
Uninsured and Under-insured Coverage – This insurance will cover the cost of damage to your vehicle if a person hits you and doesn’t have insurance or enough insurance to cover you claim.
Now that you understand the basics of auto insurance, its time to start shopping. Head over to Google and type in Progressive insurance agent Madison, WI and get started on your search for a new auto insurance policy.