What Type of Car Insurance Do You Need?
Although paying for car insurance can be a bit inconvenient, it’s illegal to not be covered. However, it’s difficult to discern which coverage is the best for each individual since there are so many options out there. The following is a brief breakdown of how to determine what type of car insurance is best for you.
In the event that you cause an accident, the amount of liability insurance that you have determines how much of the other person’s medical bills your insurance will cover.
Each state has a different minimum and it’s likely that a lawyer will come after you if your insurance doesn’t cover all of the damage in the accident.
Personal Injury Protection
Many people opt out of this protection if they already have health insurance, although some states do require you to have personal injury protection.
Comprehensive and Collision
This is required if you are renting or leasing the vehicle. Comprehensive covers any damage not caused by an accident and collision covers accidents. If the payments are over 10% of the value of your car (if you own it) then consider dropping this option.
It’s important that you fully research all of your options before deciding on a car insurance plan.