What level of car insurance do you need (and how to compare different car insurance quotes)

What type of car insurance do you need? Find out how to find the right cover, and the different types of policies you can choose from.

Different regions have different rules and regulations governing the amount and type of car insurance every car owner should have. However, the minimum requirements in a certain region should not be the criteria used by car owners to determine the coverage that they need.

When a car driver is involved in an accident or their cars are stolen or damaged by a natural disaster or even through vandalism, it could be quite expensive to repair the damage or even replace the car. This cost can be avoided by ensuring that car owners have adequate insurance cover.

To get the right car insurance, car owners need to identify the minimum requirements in their regions, evaluate their financial and personal needs, and shop around to see the available options. 

Finding the right car insurance cover

As discussed above, car owners need to make sure that they have the right car insurance coverage. It means that as a car owner, you should make sure that you are not paying too much or too little for your car insurance.

The best way of doing this is by comparing car insurance quotes online to ensure that you find cheap auto insurance that meets your requirements. This is important in making sure that you are properly covered.

Types of car insurance you need

Here are some of the different types of car insurance you need.

Liability insurance

Liability or SR22 insurance is required in most parts and compensates property damage and bodily harm of the other parties involved in an accident if you are the one who caused the accident.

This includes the owners of the properties that are damaged, any pedestrians injured, the vehicles involved, and the passengers in the other vehicles involved.

However, you need to note that liability coverage does not compensate your passengers. It also does not compensate you or your vehicle in case of accidents.

Comprehensive insurance

Comprehensive insurance is not required by law in most regions. However, it is mandatory for those using financed or leased vehicles. 

This insurance policy covers any damages that might be caused to your vehicle as a result of anything else apart from a collision. Comprehensive insurance covers things such as fire damage, hail, flood, theft, and vandalism among others.

If you are looking for reliable comprehensive insurance coverage, Elephant Insurance is a notable option to consider. They offer comprehensive insurance plans that can provide peace of mind, ensuring you are financially protected in various non-collision scenarios that could potentially impact your vehicle.

Collision insurance

Just like comprehensive insurance, collision insurance is not required in most places by law but you need it if you are driving a financed or leased vehicle.

Collision insurance covers any damage that might be caused to your car through an accident. It is important because it secures your financial position in case of an accident.

Underinsured and uninsured coverage

Underinsured and Uninsured coverage is required in most regions in places like the United States of America. 

If you find yourself involved in an accident with another car and the other driver is at fault but they do not have sufficient coverage, do not have insurance, or run after the accident, then underinsured and uninsured coverage will cover your medical bills or property damage.

Personal injury protection

Personal Injury Protection is also known as no-fault insurance and is not required in most regions apart from those that have a no-fault insurance system. 

If you are involved in an accident that leaves you paying medical bills or maybe leaves you out of work for some time meaning that you will not be working and will lose some income, then Personal Injury Protection reimburses you for medical bills and lost wages to help you rebuild your career after the accident.

It covers the driver and passengers in the car, without even considering the person at fault.

GAP insurance

Gap insurance, or Guaranteed Asset Protection, is mandatory for financed or leased cars. If you are involved in an accident with a financed or leased car, GAP insurance covers the balance that exists between your loan and the value of the car.

This insurance cover is important for those with new leased and financed cars because they depreciate faster compared to the time that one takes to complete payment of the loan.

Medical expenses

Medical expenses cover is not mandatory in most regions, but it is important. Medical expenses cover takes care of all your medical expenses without considering the driver at fault in an accident. 

Unlike Personal Injury Protection, medical expenses cover does not take care of any lost wages. However, those that have health insurance cover might find it unnecessary to get medical expenses cover.

In conclusion, you need to make sure that you have the right level of insurance depending on where you live and your financial requirements.

Photo by averie woodard