Auto insurance is a legal requirement in most areas, and some types of coverage may also be required by auto lenders. Minimum requirements for coverage can vary by state as well as by lender, and some drivers may have multiple requirements in place that are required to meet. In addition, some drivers may benefit from purchasing additional optional coverage that is available through different insurance companies.
In most cases, drivers are required by state law to maintain a minimum amount of liability coverage on their auto policy, and some states have additional coverage requirements as well. This is coverage that pays for expenses to another motorist or property owner if you cause an accident that damages their property. However, liability auto insurance will not cover your own vehicle repairs, your medical expenses related to the accident or other expenses.
Collision and comprehensive insurance are available to pay for your own expenses related to an accident or another type of event. For example, collision coverage may pay for vehicle repairs related to an automotive accident. Collision coverage may be required by an auto lender while liability coverage is typically required by the state government. Comprehensive insurance is generally more inclusive, and it may cover expenses related to an accident, a natural weather event, theft and more. This is typically an optional type of coverage.
There are other options available with most auto policies. For example, you may request coverage for towing service, rental car coverage if your vehicle is in the repair shop, personal property or personal injury coverage and more. Because each option offers unique benefits to the insured, it is important to learn more about the benefits and costs associated with each one when buying a new policy or when updating existing coverage.
Whether your vehicle is involved in an accident, damaged by a severe weather event or impacted in another way, you may be faced with costly expenses. Coverage is available to help you pay for these expenses, and some coverage may be required by law. Explore the options for auto coverage today to protect yourself from loss.