Buying auto insurance for the first time can be confusing, especially if you don’t know what types of coverage are available and the differences between them. Before signing on the dotted line, take the time to learn as much as you can about the different types of policies. A little knowledge now can save you money in the future. It also gives you the benefit of having the type of coverage you need.
1. Comprehensive Coverage
Comprehensive coverage offers exactly what the name implies. This type of insurance covers a comprehensive list of damage that includes fire, vandalism, theft, accidents, fender-benders, and most other events that could cause some form of issue with your vehicle. Comprehensive policies may also include roadside assistance, the use of a rental car, and other perks that collision and liability policies do not.
A collision policy covers damages resulting from a collision with another vehicle or an object. This type of policy is fairly limited. It does not cover any other type of damage outside of what is normally caused by your vehicle hitting another car. A collision policy is a good one to have if your vehicle is paid off and you want to keep your premiums manageable. The premiums for a collision policy are less than those of a comprehensive policy but slightly more than a liability policy.
3. Liability – Personal and Property
Liability, or PLPD, is the most basic policy you can buy and is designed to meet the minimum amount of insurance required by the state to legally drive a vehicle. Just like collision and comprehensive, PLPD covers both property damage and personal medical coverage for the other driver. It does not offer compensation to the policy owner. The premiums for a PLPD policy are the lowest available. In most cases, this type of policy is purchased to cover older vehicles with a low replacement value.
What Type of Auto Insurance Coverage Do You Need?
When you start to shop around for a new auto insurance policy, you must know your insurance requirements and the type of coverage that would best suit your unique needs. If you are still making payments on your vehicle, your lending institution will require that you carry comprehensive coverage. This ensures that they will receive their money if an accident occurs and the vehicle is declared a total loss. If you have a nicer or newer vehicle, you may want to purchase collision insurance. This will ensure that your vehicle will be fixed if you are involved in an accident.
Knowing the types of auto insurance coverage that are available will help you choose the right policy for your needs. Not everyone requires a comprehensive policy. Knowing the difference will keep your premiums affordable and provide you with the coverage you need. For more information on auto insurance, contact the experts at the Scavone Insurance Center in White Plains, New York, today. We will make sure that you have the right type of coverage for your vehicle.