There are different types of auto insurance, with some offering coverage against property damage and others covering injuries and related damages. Such factors influence the type of auto insurance you buy as the type of car you drive, your neighborhood, and any other existing insurance policies you have, among others. America’s Choice Insurance Partners offers auto insurance to residents of Wixom, MI.
Three Major Types Of Auto Insurance Explained
Every type of auto insurance is unique, with some extending the coverage to theft. It’s important to know the difference between all types of auto insurance to decide best which one is ideal for you.
Most states require car owners and drivers to have liability coverage which offers protection against damage to other people and property. If you are sued and found at fault, this coverage acquits you from financial losses in case of bodily injury and repair costs and replacements of property.
Collision coverage is crucial as it helps cover costs for car repairs and replacement when you are involved in a traffic accident or collide with another car. If you hit a static object such as a tree, collision coverage will pay up to your car’s value minus deductibles. It helps avoid incurring financial losses in the event of an accident, and it is optional coverage in most states.
Uninsured and Underinsured Motorist Coverage
This coverage is necessary for when you are involved in an accident with an uninsured or underinsured motorist. When you file a claim, and the at-fault driver doesn’t have the necessary insurance to cover repairs and medical expenses, this coverage helps. In some states, the other driver has to be considered legally at fault for this coverage to work.
Auto insurance is designed to protect you against financial losses when involved in an accident. There are different types of car insurance, so if you are a resident of Wixom, MI, consult with America’s Choice Insurance Partners to determine which one suits you best