Car insurance provides protection for you, your passengers and other drivers on the road. Getting the right coverages at the best price depends on many factors.
These include state requirements, vehicle type and model, driving record and age. Other factors like credit and location can also affect the cost.
Comprehensive Coverage
Comprehensive car 운전연수 insurance coverage covers damages to your vehicle that are the result of an event other than a collision. This includes damage sustained from natural disasters, theft, vandalism, and glass and windshield damage. It does not include normal wear and tear, which is usually covered by other warranty programs or paid for out of pocket. It is often a requirement for car leases or loans, and many people find it provides peace of mind knowing that their investment is 운전연수 protected against bad luck.
If you own your vehicle outright, or if it isn’t worth much, then you may choose to skip comprehensive car insurance altogether. You can also evaluate whether the value of your vehicle is worth the cost of the premiums and deductible that would need to be paid in case you file a comprehensive claim. It is recommended that you routinely evaluate your needs, especially as your vehicle ages.
If you decide to keep your comprehensive coverage, you should make sure you choose a low deductible that is affordable in the event of a claim. It is also a good idea to compare prices regularly. This can help you get the best deal on a comprehensive policy, and save you money in the long run.
Collision Coverage
As its name suggests, collision coverage pays for damages to your vehicle in the event of an accident that is your fault. It covers repairs or replacement of your car minus the cost of the applicable deductible. You’ll usually find this coverage in a policy alongside comprehensive. Many lenders require collision and comprehensive coverage as a condition of leasing or financing a car.
Collision insurance also covers damages to your car if it hits or is struck by another vehicle or stationary object such as a fence or light post. However, this is different from property damage liability insurance that pays for damages to the other person’s vehicle after an accident you cause.
The amount of your deductible is one of the biggest decisions when purchasing collision coverage. You’ll want to consider your ability to pay a high deductible as well as the current market value of your car. Many insurers offer “disappearing deductibles” which reduce your deductible by a certain amount for every year you go without a claim.
Whether you choose comprehensive or collision, it’s important to keep in mind that car accidents happen, and at any time your vehicle could be damaged. While some drivers decide not to purchase insurance, others feel it’s essential. In most cases, a car’s value does not drop significantly after it has been in an accident so the decision to continue to purchase insurance is often personal.
Uninsured/Underinsured Motorist Coverage
Although almost every state requires drivers to carry at least some car insurance, there are still plenty of irresponsible people out on the road who choose not to have any. Uninsured motorist coverage, or UM, and underinsured motorist coverage, or UIM, are two types of car insurance coverages that can provide protection in the event you’re in an accident with a driver who doesn’t have any car insurance at all or doesn’t have enough liability coverage to pay for your damages.
UM/UIM coverages pay for your property damage and injuries caused by an uninsured motorist, as well as damages caused by drivers who have only the minimum amount of car insurance required by law. Generally, you can choose to have the same limits for UM/UIM as you have for your liability coverage. A Farmers agent can help you decide how much UM/UIM coverage to purchase.
You may also be able to add a UM/UIM deductible in addition to the deductible you have for your collision coverage. This helps offset the cost of the UM/UIM coverage in the event you file a claim. In some states, you can even stack UM/UIM with your liability coverage to increase the total coverage limit for both. This type of coverage is a great option to consider for extra peace of mind.
Medical Payments
Medical payments coverage, or Med Pay, helps pay for medical expenses for you and your passengers after a car accident — no matter who caused the crash. It typically covers ambulance bills, hospital visits, surgery costs, nursing care, home therapy and funeral expenses. It may also pay for your lost income if your injuries keep you from working, but it doesn’t address pain and suffering or other non-medical related losses.
It’s an important add-on if you don’t have health insurance or your plan has high deductibles or copays. But it’s not a substitute for liability car insurance, which will help cover the other driver’s damages in most cases.
Some states require this coverage, called personal injury protection or PIP. It’s similar to MedPay, but it usually covers more expenses and includes wage reimbursement if you can’t work. If you have PIP, you might not need to get MedPay in addition to your liability policy.
The best way to determine if you need Med Pay is to look at your state laws or read the declarations page of your policy. The declarations page lists the coverage amounts you’ve selected and the circumstances under which they apply. You can also ask your auto insurer if you have any questions. If you live in Michigan, though, you probably don’t need Med Pay because the state is a no-fault insurance state and already requires drivers to have PIP coverage.