Operating a motor vehicle of any type on the open road means that you are mandated by law to purchase auto insurance. Doing this before you start driving is essential, whether you choose just a liability policy or a full, comprehensive policy. Learning more about what is covered in each of these types of insurance will ensure that you purchase the right policy for you and your particular needs. Keep in mind the requirements of both your state and your lender.
Collision or Liability Insurance
When you want to spend less on your insurance, consider a collision or liability policy. Collision insurance aids in paying for repairs or for replacement if you are involved in a head-on collision, while liability protects other motorists on the road with whom you may have an accident. Either way, you want to be sure that you consider not only your budget but also your car’s value and your ability to replace or repair it if you are involved in an accident.
Another type of policy that you will want to consider is comprehensive. This type of policy protects you if you are involved in an accident that does not involve another car, as well as if your car is stolen or damaged by tree limbs, etc. There is also a Personal Injury Protection policy, also called a PIP, to cover your medical bills and any other passengers who may have been in the car with you.
Full coverage will pay for any medical bills or car repairs needed after an accident. This type of coverage is more expensive, but many loan companies mandate it, at least until you pay off the loan for your car.