AUTO INSURANCE COVERAGE: REQUIRED AND OPTIONAL

2007-03-08 10:33:40

( Health )



Required and optional are the types of auto insurance coverage that every motorist should be familiar with. These types of auto insurance coverage are designed to help motorists cover expenses on accidents related to their automobiles. Liability, collision and comprehensive are the main auto insurance coverage that every estate in America might require from motorists. Some estates might require or make it optional to have only one or two of this auto insurance coverage.

Liability Coverage

Liability coverage is the main and required coverage of auto insurance. It is designed to protect you from covering expenses in case you destroy another car and in danger the health of another person while driving your own car. It is commonly quoted as “100/300/50” which means that one hundred thousand dollars are covered for injury per every person, three hundred thousand dollars for total body injury and fifty thousand dollars is covered for property damage. It is the recommended minimum ratio of liability coverage in the auto insurance industry to protect the insured from shelling out own money to cover expenses related to personal and property damage in case of accidents.

Collision Coverage

Collision coverage for auto insurance is usually optional. It is considered an expensive coverage for auto insurance. It covers damages done to your car. However, you will not need collision insurance if you are a careful driver since if another motorist hits you his liability insurance coverage will pay for the damages done to your car and yourself.

Comprehensive Coverage

Comprehensive coverage is also optional to include in you auto insurance coverage. It is also expensive like collision coverage. It is designed to protect the insured’s car from unexpected dangers not related to car crash or accidents. Theft, vandalism, fire, earthquakes and other natural calamities that can put damage to your car are the situations which comprehensive coverage include. Thus, you have to consider the environment threat of the place you are living in and the places you travel before you consider getting a comprehensive coverage for your auto insurance.

Car insurance coverage is necessary for every motorist to help them cover expenses in case of accidents that arises from natural or man made disasters. However, you need to carefully evaluate how much you need each type of coverage to protect you from incurring unnecessary costs.


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