Car insurance

Car insurance is something that we don’t really want but sometimes, or almost all of the time, have to get. In fact, some states require it. In such cases, we really have no choice but to avail of one. And since it’s something that we’re not always willing to do, we try to find the best insurance policy possible to save us the most money.

What kind of car insurance you can get depends on the state you’re in. But in general, there are seven different types of car insurance you should take into mind and hopefully save you money.

1. Liability Insurance – applies when you are the one at fault during an accident. The insurance will cover the cost of the injuries and property damage caused by the crash to the injured party. It doesn’t include your injuries and the damage to your vehicle. It also excludes the beneficiaries in your policy. In this case, the best option is to go beyond state minimum requirements because you are personally liable for any costs exceeding your car insurance coverage.

2. Collision Insurance – covers repairs to your car in case of an accident. If your car was crashed into, your policy will pay for your car’s worth before the crash – not its brand new price. But if you do want to get the closest as possible to the value of your car when you bought it, you have a choice to add a certain coverage – at an extra cost, that is.

3. Comprehensive Insurance – refers to other possible car damages such as theft, animal collisions, etc.

4. Uninsured/ Underinsured Motorist Protection - If the driver on the other end of the accident’s insurance policy doesn’t cover for your medical expenses and vehicle damage, or if he has no insurance at all, this policy covers for at least the injuries to anyone riding in your car. In some states, it may even include property damage.

5. Medical/ Personal Injury Protection – You don’t have to avail of this if you already have a health policy insurance. But the best thing about this insurance is that it can cover for you and your passengers. It doesn’t matter who is at fault during the accident.

6. No-fault Insurance – covers for injuries and property damage, regardless of who caused the accident. This type of insurance is available in 12 states.

7. Gap Insurance – allows the car owner to pay off the vehicle in case of an accident. This is especially helpful when the owner owes money on the car, more so if he/she owes more than the care is worth.

Before getting any kind of car insurance though, it all boils down to your financial situation. The type of car insurance you will avail depends on your financial capacity and need. And at the end of the day, avail of a car insurance policy that will give you the best money back guarantee. If not, don’t bother getting a car insurance at all – unless your state requires it.