Published: May 2013
If you're shopping for car insurance, one thing to keep in mind is that there are many different types of coverage. While most states require some minimum limits of coverage, there are additional options you can select to increase your protection. Before you begin your search, check out this list of the most common coverage types.
Liability coverage will help pay for bodily injury to another person or damage to their property stemming from an accident you cause. Most states require that you carry a minimum limit of liability protection to be in compliance with the law. But, keep in mind that your basic state requirements may not be enough protection from an accident. For this reason, you can elect to increase your liability coverage limit above the state minimum.
Collision and comprehensive coverage are optional. However, your auto lender or lease holder may require you to have these coverages until you've paid off your vehicle.
Collision coverage helps pay for damages that your car may suffer in an accident.
Comprehensive coverage helps pay if your car is damaged from causes other than a collision. Theft, vandalism, falling objects and hail are commonly covered by this type of coverage.
In addition to liability, collision and comprehensive coverage, there are other coverage options that can help keep you protected.
Medical payments coverage, for example, can help pay the medical bills you or your passengers incur if you're injured in an accident.
Personal Injury Protection, often called PIP, can also help reimburse you for lost wages if you're unable to work due to an injury that results from a car accident. It may also reimburse you for child care expenses if you're unable to take care of your children following an injury.
Uninsured and underinsured motorist coverage can help cover your damages caused by someone with limited coverage, or no insurance at all.
Other coverages an auto insurer may offer include towing and labor coverage, which helps with the cost of towing your vehicle if it breaks down or gets a flat tire, rental car reimbursement, which can help cover the cost of a rental vehicle while you wait for your covered car repair to be finished, and even sound system coverage for those drivers who install aftermarket stereo equipment in their vehicles.
As you can see, there are quite a few types of coverages that you can buy. Your premium can increase or decrease depending on how low or high you set your coverage limits or your deductibles, which is the amount you pay out of pocket before your policy begins paying for a covered loss. If you're looking for an auto insurance policy, contact an Allstate agent today to discuss your options.