4 Types of Car Insurance Coverage You Don’t Want to Skip | 4 types of car insurance coverage you dont want to skip

In an effort to save money, many drivers often opt to get the minimum insurance coverage required by law. This will include a minimum for bodily injury liability and property damage that varies by state. While it is important to maintain this minimum insurance to cover your basic liability in case of an accident, carrying only the minimum can leave you vulnerable to huge bills for medical costs and property damage that is not covered in certain situations. There are many types of supplemental insurance that can give you the protection you need in a variety of situations so you don’t face heavy financial burdens in case of an accident.

Here are just 4 types of car insurance coverage that you don’t want to skip:

Uninsured Motorist Coverage

If you are in an accident that is not your fault, your medical bills and property damage should be covered by the other driver’s insurance. But what happens if the other driver doesn’t have insurance? Or doesn’t have enough insurance to cover your damages? Your insurance may offer you some protection, depending on the situation, but in most cases, it won’t.

Uninsured and underinsured motorist coverage offers you protection if you are in an accident with a driver who does not carry insurance or who does carry enough insurance to cover your damages.

MedPay

MedPay is important coverage that pays for the cost of your medical bills incurred from an accident, up to your coverage limits. Minimum insurance coverage often does not include medical coverage for you, the driver. While your own health insurance may cover you, you may still have high deductibles or co-pays. If the other driver’s insurance is covering your bills, it could take months before your claim is processed and your bills are paid.

MedPay covers your medical bills immediately and in full up to your coverage limits, relieving you of the financial burden. It also covers you no matter if you are in your own car or another car, or even if you are on public transportation.

Comprehensive Car Insurance

You may be covered if you are in an accident, but what happens if a tree falls on your car during a hurricane? Or if your car is stolen? Or a vandal breaks the window to steal your purse? Basic car insurance does not cover damages in these situations.

Comprehensive car insurance will cover damages in case of a natural disaster, theft or vandalism.

It’s important protection for those unexpected situations that could leave you with thousands of dollars in damages.

GAP Coverage

If your car is totalled, your insurance may cover the replacement value of your car. However, if you are financing your car, the replacement value may not be the same as the value that you still owe on your loan. Your car could be valued at $2,000, but you may still owe $4,000 on the loan. That would put you on the line for the remaining $2,000.

GAP coverage can provide compensation for the difference.

If you are still financing your car, GAP coverage is important insurance to have. You don’t want to have to be on the hook for thousands of dollars that you likely don’t have.
When you are shopping for car insurance, don’t focus on getting the lowest monthly premium by cutting your insurance coverage to the minimum requirements.

You will be short-changing yourself and potentially costing yourself thousands of dollars in the future if you are in an accident and have damages that are not covered in your basic policy.

These are just 4 types of car insurance coverage you should consider getting, but you may find that others are also necessary for your needs.

The Author:

Kelly Opferman is a seasoned writer who at this time focuses on her car payment calculator site. Her educational background includes finance, teaching, and economics.

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