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Coverage & Deductibles for Dummies

Auto insurance is a necessity if you drive a vehicle on the road. With so many different types of coverage available, what do you need and what don’t you need? Even more, what is required? Let’s take a look at the different types of coverage you can get from your insurance company and then we’ll jump into a short explanation of deductibles.

Types of Coverage

This coverage, regardless of who is at fault in the event of an accident, will provide protection for your vehicle to repair or replace your automobile. Of course, your deductible must be paid in full first.
This coverage covers you when circumstances arise, such as hail damage, limb falling, etc., that do not involve a vehicle collision. This coverage will pay for the repairs of your automobile and is also subject to a deductible.
This stands for personal injury protection and is related to medical expenses that resulted from a traffic accident. Regardless of the person at fault, this will cover the individuals listed in the insurance policy.
Medical Payments
Up to a limited, pre-determined amount and regardless of the person at fault, this covers you as well as anyone else in the vehicle with you at the time of an accident.
Bodily Injury and Property Damage Coverage
Should someone be injured or property damage as a result of a vehicle accident that is your fault, the insurance company will pay for the damages up to a certain amount.
Uninsured and Underinsured Motorists Coverage
This coverage will protect you should you become involved in a vehicle accident with a driver that is either uninsured or underinsured.

Recommended Deductibles

Collision and Comprehensive
For these two types of coverage, in order to maintain an affordable deductible but also ensure you have a cheap insurance premium, you can set your deductible between $500 and $1000. Raising your deductible from $250 to $500 could save anywhere up to 30% while raising it to $1000 could save up to 40%.
While not required in every state, this coverage does not require a deductible but is required to be on your policy in certain states.
Medical Payments
As an option feature, this does not require a deductible. This coverage is recommended if you and/or your passengers do not currently have health insurance.
Bodily Injury, Property Damage, Uninsured and Underinsured
These are all types of coverage that are likely required in your state with the exception of the last two. Depending upon the state that you live in and its law, the required limits will vary.

The most important thing is to make sure that you have the coverage that you and your vehicle need.