Liability insurance covers costs like medical or repair costs for other people if you cause an accident. Every U. But those state minimums are not nearly enough to protect you. Comprehensive coverage protects you from things like theft or damage from a fire, a storm, a natural disaster or even a tree branch falling on your car.
So, do you need collision? The only time you might not need collision is if your car is paid off and, again, you could replace it from your savings. Depending on where you live, MedPay is a requirement. Personal injury protection PIP is similar to MedPay but has more extensive coverage, higher coverage limits and a higher premium. Here are some things PIP may cover for you:. Though it varies from state to state, PIP usually offers immediate coverage up to the limit set by your auto insurance and would need to be used up before you have to tap into MedPay or your own health insurance policy.
With the cost of new cars continuing to climb, the average length of a car loan has expanded to six years or more, making GAP insurance more popular than ever. Our recommended auto insurance coverage? Skip GAP insurance and save yourself a financial headache by buying a used car with cash in the first place.
If you already have a car loan, make it your goal to pay it off as quickly as possible so you can drop the GAP coverage and lower your premium. Temporary car insurance is another type of coverage you should know about. Instead, it comes in the form of non-owner car insurance or rental car insurance. Our advice? Save your money and skip this coverage.
So, how exactly do you make do without a car after an accident? It covers the cost of a rental car up to a specific dollar amount and number of days while your car is in the shop. If your car tends to sit in the garage collecting dust, you may be interested in pay-per-mile coverage. Or that time you hit a pothole and were left with two flat tires? Roadside assistance coverage saves you in these moments. It covers having fuel brought to you, getting your battery jumped, having your car towed to the nearest repair shop or replacing a dead battery.
You may be wondering, Why would I purchase an umbrella liability policy if I already have liability insurance? To save money, insurance companies often use aftermarket parts when they replace or repair parts on your vehicle. Original Equipment Manufacturer OEM endorsement coverage ensures that the same parts your manufacturer safety tested and used to originally build your vehicle will be used on your car.
Did you know that just one at-fault accident can significantly increase your insurance premium? PIP rules vary by state where it is offered. For example, for Florida car insurance , PIP options range from basic to extended:. If PIP is optional in your state, you can choose to decline it if you have a good health insurance plan. MedPay is required in some states.
How much MedPay should I buy? But you might need a few additional coverage types to fill in some gaps. Here are some to consider.
You can get free quotes online or by calling an independent agent in your area. Make sure you ask about car insurance discounts. Insurance companies offer many types of discounts to attract customers—everything from good driver discounts, car safety discounts, multi-policy discounts, and even discounts for paying in full or going paperless. The best car insurance companies pair competitive prices with good customer service.
If you get into a car accident, you want to be sure your insurance company will make the insurance claim process go as smoothly as possible. Jason Metz is a writer who has worked in the insurance industry since He has a B. Select Region. United States. United Kingdom.
Updated: May 4, , am. Jason Metz Editor. Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations. Get the Forbes Advisor newsletter for helpful tips, news, product reviews and offers from a name you can trust. I agree to receive the Forbes Advisor newsletter via e-mail.
Please see our Privacy Policy for more information and details on how to opt out. Was this article helpful? Share your feedback. If you have a new car, luxury car or an expensive vehicle, you might want to carry collision and comprehensive coverage as well. If you have a loan on your vehicle, you can carry gap coverage as well. Each state has different rules and regulations regarding insurance requirements.
Some states have much higher minimum coverage levels than others, and sometimes even require you to carry additional coverages such as personal injury protection PIP and uninsured motorist coverage UM. Car Insurance Guide for the Savvy Consumer. Liability Car Insurance. Rachael Brennan is a professional freelance writer. She has been published on a number of websites, including Adweek, Glamour, and Cracked.
You can follow her on Twitter rachaelbwriter. By Rachael Brennan. Reviewed by Mark Fitzpatrick. Key Takeaways. Need More Personal Finance Cowbell? Is Car Insurance Required? State Min Liability-Only. Collision: Collision insurance pays for damages to your vehicle when you are at fault in an accident. If you have a loan on your car, your lender may require active collision insurance on your policy.
Hail damage, theft and fire damage are just a few examples of what would be under this comprehensive insurance coverage. This does not supersede your per person maximum, however.
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