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The Different Kinds of Vehicle Insurance: Know Which Ones You Really Need

In many states, vehicle insurance is a legal requirement before you can drive your car. But there are many options for vehicle insurance in North Carolina or anywhere else in the U.S. So you need to decide which one is best for you, your car and your budget.

  1. Liability Insurance

Usually, when a state requires that you carry insurance for your vehicle, what they’re referring to is liability insurance. With this type of coverage, you’re covered for the cost of medical treatment and repair of any property damaged in the crash if it’s determined that you’re at fault in the accident.

Most states impose a minimum liability insurance coverage. But it makes sense to get more than the minimum requirement because any claims that exceed your coverage’s limit will have to be paid out of your own pocket.

  1. Collision Insurance

The main issue with having only liability insurance is that in the event of an accident, you’ll have to use your own money to get your own vehicle repaired. Fortunately there is collision insurance which will pay for your car repairs. It also covers your car if it is totaled.

  1. Comprehensive Insurance

Some people consider comprehensive insurance unnecessary. But liability and collision insurance only cover car accidents which means that weather damage, animal collision, and theft are not covered. With comprehensive insurance, your insurance provider will take care of basically any situation that comes up.

  1. Uninsured Motorist Protection

Even if liability insurance is required for nearly every state, it still doesn’t mean everyone has coverage. And even if they do, the low minimums may not be enough to take care of all the expenses. So there’s a good chance you could end up paying for your own medical bills and repairs even if you’re not at fault. To avoid this, you should consider getting uninsured motorist protection.

  1. Personal Injury Protection

It can be very expensive to treat accident related injuries. But with personal injury protection, you don’t have to pay for these out of pocket. It does not matter who is at fault, with this kind of coverage, your medical bills as well as your passengers’ are covered. On the other hand, if you have an excellent health insurance policy, personal injury protection may not be necessary,

  1. No-Fault Insurance

This type of insurance is only available in 12 states. It provides coverage for injuries and property damage, regardless of who caused the accident. Deciding to buy no-fault insurance really depends on what your options are and how much these things cost. Some of these policies can be pricey.

  1. Gap Insurance

This kind of insurance is suited for those who are still making payments on their cars. If the vehicle is totaled, then they will have to pay off the amount of money they owe. With gap insurance, you don’t have to pay for anything. Gap insurance may be worthwhile if the amount of money you owe on the car is higher than the amount you’d get if you sold your car today.

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