Car insurance is as important as life insurance and health insurance. When your car gets damaged in an accident you must get reimbursement of the repair charges. When your car causes damage to another vehicle or property of others your car insurance should provide coverage for the same. When the driver of your car and your family members who are included in the policy suffer injury in an accident, you must get reimbursement of the medical expenses. It is very important to know the different types of car insurance, the coverages that are provided by car insurance and the extent of car insurance you really require. In fact, one requires more insurance than the minimum fixed by the state since the minimum fixed by states will not provide sufficient coverage when there is an accident which has caused damage of car and injury to people. Those who have health insurance and disability insurance through the employer need not spent too much for the personal injury protection policy.
No-fault insurance policies
Those who want to repair the car must have the Collision and Comprehensive coverage policies. These policies have deductible and when the deductible is higher the premium will be lower. Collision insurance may be used only when the repair costs are in thousands and not in hundreds. Those who live in one of the no-fault states are required to purchase no-fault insurance policies. Since the no-fault insurance policies are expensive, one should ensure that he gets the best deal from the insurance company. Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah and Puerto Rico are the no-fault states.
Recommended minimum coverages
One should have sufficient coverage to ensure protection of assets when there is an accident. Though the minimum recommended coverage is $300000, even that may not be sufficient in many of the cases. The minimum coverage fixed by states for bodily injury insurance may not be sufficient to cover the medical expenses of a serious accident. The recommended minimum coverages on a single limit policy are $100000 per person and $300000 per accident for bodily injury and $300000 for property damage. In case the annual cost of a full coverage insurance policy exceeds 10% of the replacement value provided by the insurance company the full coverage may be dropped. The full coverage insurance is expected to cover the damage caused by the policy holder to others up to his liability limits. While full coverage is for damage to the vehicle owned by the policy holder liability is the damage caused by the policy holder to other people or their property while driving the car or when the car is on the road.