The Quest For Complete Car Insurance Coverage

There is no single auto insurance policy that will cover every imaginable risk. However, buying the following forms of coverage will get you as close to complete coverage as possible.

Liability

Liability coverage pays for losses your car might cause to other people. Liability coverage includes bodily injury coverage that compensates for bodily injuries and property damage coverage that covers damaged property. Liability coverage is a legal requirement for all motorists; the government even determines the minimum liability coverage to carry.

Uninsured/Underinsured

Uninsured motorist coverage comes to your rescue if you are involved in an accident and the person responsible doesn't have auto insurance coverage. Underinsured motorist coverage compensates your losses if you are involved in an accident and the person responsible does have coverage, but their coverage limit is low and doesn't cover your entire damages. Some states require you to carry this coverage whereas other states leave the decision up to motorists.

Personal Injury Protection or MedPay

If you are involved in an auto accident and another person is liable for your damages, then you have to go through the liable party's insurance to get the funds to cover your treatment. This can be cumbersome and time-consuming. Personal injury protection (PIP) or medical payments coverage helps you get the necessary funds from your insurer regardless of who is at fault for the accident. Some states make PIP coverage mandatory while MedPay is universally optional except in two states. While MedPay is strictly for medical damages, PIP coverage may extend to other damages such as lost income.

Collision

Collision coverage compensates your losses if you accidentally collide with another car or object. For example, if you collide with a guardrail or a fallen tree, collision coverage will help you repair the damages or replace your car in case it is totaled.

Comprehensive

Comprehensive coverage compensates you for damages caused by things other than collisions. For example, if a hailstorm damages your car or a fire outbreak razes your car, it is your comprehensive coverage that will come to your rescue.

Appropriate Riders

Even if you have bought all the forms of coverage above, your insurance policy doesn't cover you from every imaginable risk on earth. That is why auto insurance companies have riders or add-ons for motorists who require extra coverage. The riders are optional coverage that covers specific risks.

For example, you can buy roadside assistance coverage that comes to your rescue if your car breaks down far from auto mechanic shops. Another example is depreciation protection that ensures your compensation does not take into account the depreciation value of your car. There is also rental reimbursement coverage that provides you with a replacement car if your car requires a lengthy repair period.