Every state requires that you carry a certain amount of liability insurance, though the exact amount of coverage that you are required to carry does vary from state to state. Nonetheless, the basic purpose of this insurance is the same: to make sure that all drivers are adequately covered in the event of an accident.
By having certain minimum requirements in place and by requiring all drivers to carry insurance coverage, every driver can theoretically drive in confidence in knowing that their damages will be paid for if someone else causes the accident to occur. It is important to note, however, that the person that caused the accident to occur does not receive coverage through liability insurance. Rather, this insurance is meant solely to cover the expenses of the other driver, passengers, or pedestrians that were involved in the accident.
If you want to be certain that your damages will be paid for, whether you cause the accident or not, you will need to add collision coverage to your insurance policy. Nonetheless, you will need to start off your insurance policy with liability coverage and you can then add on to your coverage from there.
In addition to adding collision coverage to your policy, you can add comprehensive coverage as well. With this coverage, your vehicle will be protected if it is stolen or if it is damaged by accidents such as hitting an animal in the road. You may also choose to add rental reimbursement to your policy, which will help cover the cost of renting a vehicle if your vehicle is damaged and becomes undrivable for a period time.
Some drivers choose to add towing and labor coverage to their insurance policies as well. With this type of coverage, the costs associated with taking care of your vehicle if it breaks down are covered. Or, if you still owe money on the vehicle, you might choose to add on gap coverage. With gap coverage, the amount of the loan you still have on the vehicle will be paid if it is totaled in an accident and is worth less than what you owe.
Although there are a number of great add-ons that you can include with your insurance policy, no state requires these add-ons to be put into place. If you owe money on a vehicle, the lender will likely require you to have collision and comprehensive coverage before you will be loaned the money. Nonetheless, this is not a state requirement. Rather, all you are required to carry is liability coverage that will protect the other driver in the event of an accident or that will meet the no-fault coverage requirements if you live in a no-fault state.
By having only the most basic insurance in place, you can save a substantial amount of money on your insurance premiums. If your vehicle is valuable, however, it may be a better financial decision to carry additional coverage on the vehicle. Similarly, by keeping your deductible higher, by maintaining a good credit rating, and by driving safely and legally, you will likely find that your car insurance does not have to cost that much.
If you are interested in learning more about the insurance policies that agencies in your area have to offer – whether you are just looking for liability coverage or if you want to add additional protection – take a moment to complete our simple online form. After you answer a few simple questions, we will forward your information to the appropriate insurance agencies and they will be in touch with you in order to share the policies and price quotes that they have to offer.