The Types of Car Insurance You're Going to Have to Choose From

Have you ever sat down to read your car insurance policy cover to cover? If you have then you already know it's about as clear as mud! If you're not fluent in insurance-ese or legal-ese you're destined to spend half the time with your policy in one hand and a dictionary in the other! The good news is, there are really only a few things you need to understand about your insurance coverage. How high your coverage limits are, and what's going to be covered.

In other words, you need to know what type of car insurance you have!
 
There are five major types of car insurance:

1)      Liability Car Insurance-If you have no other type of car insurance on your car you need to have liability. Every time you're involved in an accident you're responsible not only for your own bills but also those of the people you were in the accident with. That means car repairs, medical bills and light pole repairs that can completely annihilate your fiscal resources! (Has anyone else noticed how the emergency room has started charging you $200 or more just to stop in and say hello?) Liability insurance steps in to pick up those expenses so you're not left floundering.

2)      Comprehensive Car Insurance-Three words for you: Acts of God. If your car catches on fire, is struck by lightening, washes away in a flood or winds up buried beneath a thick trunk of a tree you're still going to need to fix/replace your wheels, even though it wasn't "technically" an accident (with another car, that is!). This is where comprehensive insurance coverage comes into play.

3)      Collision Car Insurance-Liability takes care of everything else, but who's going to take care of you? You still have to get your own car back ont eh road when you've been in an accident, which means you're going to want collision coverage on your side. They'll take care of the cost to put your car back together so you're not left walking to work for weeks until you can come up with the money to buy another one.

4)      Uninsured Motorist Insurance-With studies estimating that between 10 and 16% of Americans are going to be driving without any kind of car insurance whatsoever within the next few years, the last thing you want ot have happen is find yourself in an accident without any insurance to back you up. You could find yourself paying thousands of dollars to put your car back on the road while you're tied up in court for years. After all, if they couldn't afford their insurance premiums what are the chances that they'll be able to afford to pay for your car too?

5)      Rental Insurance-Last, but certainly not least, let's talk about rental insurance. This is a relatively recent addition o the car insurance industry, but when you're stuck without a vehicle 600 miles from home the ability to rent a car without paying a small fortune out of pocket is going to be priceless-and well worth the extra $15-50 a year you're going to pay to add it on to your insurance.

Michael McDonough is a National Account Executive for QuoteScout.com, where they specialize in helping drivers get the best possible deal on their car insurancel. For more about the types of car insurance out there for your car, visit them on the web at http://www.QuoteScout.com

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