Knowing what type of car insurance is right for you can be of critical importance. Are you someone who is planning properly to get the right kind of coverage that you need, or just the kind of person who keeps that absolute minimum you can to save money? Most people have the idea that state minimum car insurance isn’t the best insurance. The name itself suggests that it is actually the worst type of insurance a person can carry. The understanding that most people lack, however, is the idea of what type of insurance they should actually have. There are basically three different types; protection from lawsuits, protection for property, and protection from surprises.
Protection from lawsuits
The first type of protection (from lawsuits) is liability insurance protection. When you carry state minimum car insurance, you are a walking potential lawsuit. Why? If you cause more damage than your meager state minimum limits, you won’t be insured for the overages. The only recourse the injured driver has is to sue you and try to reclaim some assets and/or bills. Higher liability limits is better protection from lawsuits.
Protection for property
The second type of protection is protection for property. This can come in two forms. The first form is protection from property damage occurring as a result of your actions. This type of protection is referred to as collision insurance, and will insure your vehicle if you crash into other objects. The second form is protection for your property from damage resulting from other forces not of your control. Comprehensive insurance and uninsured motorist protection are the two most common forms of this type of protection.
Protection from surprises
The third type of protection is protection from surprises, or protection from unexpected circumstances. Personal injury protection is the most common car insurance coverage that applies here. When you are in a car accident and get injured, it is usually a surprise. That “surprise” may even cause you to miss work due to injury. Fortunately personal injury protection can help prevent you from going without medical help and possibly wages during those trying times.
So what type of insurance should you actually have? That is entirely up to you, but the three areas above should give you a guide as to what type of insurance to buy if you want to prevent one or all of the three scenarios above from occurring.
