Home Insurance Terminology Explained

What Type And How Much Car Insurance Do You Need?

Buying car insurance can be confusing. You may not understand that there are different types of insurance to choose from and not all policies are alike. You want more insurance for your money and don't want to be under-covered. Read on for different types of car insurance and how much you may need to help guide you when shopping around for car insurance.

Types Of Car Insurance

There are a few different types of car insurance that you can purchase including:

  1. Collision insurance which will protect you and your vehicle in the event of a car accident. 
  2. Liability insurance is a bare minimum insurance coverage that protects the other vehicle in the event of an accident. This is usually a state required insurance every motorist should at least have.
  3. Comprehensive insurance which may help cover damage to your vehicle that can occur other than from an accident. Things such as someone denting or scratching your car, hitting an animal while driving, hail damage to your car or a vehicle break-in.
  4. Uninsured motorist insurance covers you in the event you are in an accident with a motorist that is not insured.
  5. Under-insured motorist insurance is coverage that can pay for damages when the other motorist's insurance is not enough to pay for damages or personal injury.

The type of insurance you need depends on how much you drive, how much your car is actually worth and how much protection you think you need. If you own a car that is older and used mostly for only driving back and forth to work, and you don't have a loan on the vehicle, liability insurance may be the best insurance for that vehicle. If you have a brand-new car that you have a loan on, you may want collision and comprehensive insurance, as well as under-insured motorist coverage. This way you and your vehicle are protected in the event of an accident whether you are at fault or not your can will be repaired or replaced.

How much car insurance you need is going to also depend on the value of your vehicle, how much in lost income if you are injured and unable to work, as well as how many occupants may be in the car that could be injured (think about the medical costs that could be involved).

Talk to a car insurance company like Angel Auto Insurance about which types of insurance they offer and get a quote today to ensure you and your family are covered in the event of an accident.