When purchasing an auto insurance policy, the law only requires that this policy provides liability coverage in case you hit another vehicle. However, there are several types of optional coverage that you can choose to add to your policy in order to ensure you are better protected in the event of an accident. Below you will learn more about three of these optional types of coverage which you should really consider adding to your policy.
While your liability coverage will provide coverage for any damage that you do to someone else's vehicle, this coverage will leave you high and dry when it comes to repairing your own vehicle if you ever cause an accident. This is why you should also choose to add collision coverage to your auto insurance policy. Collision coverage provides protection against damage to your own vehicle if you ever cause an accident. This type of coverage can be especially important if your vehicle is currently financed since you will be required to pay off your auto loan even if your vehicle is totaled before you finish paying for it. Collision coverage can help to ensure you have the money to pay off this vehicle and purchase a new one even if your vehicle is destroyed in an accident.
Uninsured Motorist Coverage
While all vehicle owners are supposed to carry auto insurance, the sad fact is that there are always going to be some drivers on the road who choose to break the law by not purchasing insurance. If an uninsured driver hits you, the damages done to your vehicle will not be covered by your standard insurance policy. In order to ensure you have coverage in this situation, you will need to add uninsured motorist coverage to your policy. Uninsured motorist coverage allows you to file a claim with your own insurance company in order to repair your vehicle and/or cover any medical bills you may incur as a result of your accident.
Underinsured Motorist Coverage
Auto insurance policies that offer the minimal amount of coverage required by law may not offer enough coverage to fully cover the costs associated with a serious accident. This is especially true if you own an expensive vehicle that would be costly to replace if destroyed. In these situations, having underinsured motorist coverage will prove essential since this type of optional coverage allows you to file a claim with your own insurance company for any damages which are not covered by the other driver's insurance policy.
To learn more, speak with an auto insurance agency in your area