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Buying Auto Insurance: Understanding The Coverage Options And The Protections They Offer

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When buying auto insurance, it is important to make sure your policy includes the different types of coverage that you require. However, you will also want to make sure that this policy excludes any type of coverage you do not need or want. This ultimately ensures that you end up with the protection you need while also keeping your insurance premiums as low as possible. The first step in accomplishing this goal is to fully understand the different coverage options and the protections that they offer. 

Liability Protection

When purchasing an auto insurance policy, this policy will automatically include liability protection. This coverage is required by law and cannot be excluded from your policy. This coverage protects you against personal liability if you cause property damage or bodily injury while operating your vehicle. This coverage does not apply to damage done to your own vehicle. 

Collision Protection

In the event of an accident, damage may be done to your vehicle as well. As previously discussed, liability coverage will not help you cover the cost of repairing this damage. This is where collision coverage comes into play. If you choose to include this coverage in your policy, this coverage will help pay to repair the damage to your vehicle. However, you should be aware that there is typically a deductible associated with this type of coverage. This is the amount you will need to pay toward the cost of repairs before your insurance coverage kicks in. Consequently, this type of coverage is not typically beneficial for individuals with older vehicles which may not be worth much more than the cost of their deductible. However, individuals may find that they are required to carry this coverage as part of their loan terms if they are currently financing their vehicle. 

Comprehensive Protection

Severe weather, road hazards, and criminals are just a few of the many other things that damage your vehicle without an accident taking place. Unfortunately, this type of damage is not covered by either liability or collision coverage. For help covering the cost of repairing this type of damage, you will need to include comprehensive protection in your auto insurance policy. This type of coverage is designed to help cover virtually everything that is not covered by the previously discussed coverage options. In many cases, comprehensive coverage will also include protection against theft and glass damage. As with collision coverage, there is typically a deductible associated with comprehensive coverage. 

For more information, contact an auto insurance company in your area.