Choosing A Better Insurance Plan

Do You Know What Your Auto Insurance Really Covers?

by Isabella Torres

You took the time to select a reputable insurance provider, and you faithfully pay your auto insurance premiums each month. You drive with confidence because you are sure that your auto insurance company will take care of everything if you are involved in an accident. Sadly, the day does come that an accident occurs and you are forced to file a claim against your policy. After reviewing your coverage options, the insurance company denies your claim because your policy does not include coverage for your specific circumstances. Unfortunately, this story is all too common. 

People often assume that they are covered in a variety of different situations without really understanding what their auto insurance policy covers and what it does not. This is because people tend to focus solely on the cost of an insurance policy rather than on the perils that each policy covers. If you really want to make sure that you are covered, it is vital that you understand the different coverage options you have available to you so that you can choose a policy that includes the level of coverage that you desire. Continue reading to learn more about some of the coverage options you may wish to have included in your auto insurance policy.

Collision/Comprehensive Coverage

Depending upon which insurance provider you use, these two coverage options may come as a bundled package or be listed separately. If you have the option of purchasing just one or the other, it is important to know what each individual coverage option includes. Typically you will find that collision coverage offers coverage for damage to your vehicle if you cause an accident while comprehensive coverage offers coverage for damage to your vehicle that is unrelated to an accident. Some of the scenarios that are covered by comprehensive insurance include theft, vandalism, road hazards, and natural disasters.

Uninsured Motorist Coverage

While it is true that all vehicle owners should have liability insurance, the fact remains that there are many drivers on the road that do not have active insurance policies. If you are struck by a driver who does not have insurance coverage, uninsured motorist coverage will provide you with the coverage you need to get your vehicle repaired or replaced.

Rental Car Coverage

While your vehicle is being repaired after an accident or other property damaging event, you will likely require the use of a rental car. This can be a rather expensive service to use if you do not have insurance coverage to help pick up the bill. Including rental car coverage in your auto insurance policy can ensure that you don't find yourself paying for this expense out of your own pocket.

For more information, contact a local auto insurance company.