Auto Insurance | Car Insurance Maryland
Jun 9th, 2010 by admin
Buying auto insurance can sometimes seem as overwhelming and confusing as buying the car itself. In addition, different states vary in their requirements for limits and coverage. There are so many companies, options, and differences in price that you may feel unsure about what it all means. But waiting until after an accident happens to figure out all of the jargon in your contract is a big mistake. Get started with this simple guide to the different types of auto insurance.
In case you are at fault in a collision:
Liability insurance: This is required by most states, and you should look for a high level of coverage. If you are judge to be at fault in a collision, this pays to fix other vehicles or objects.
Basic collision insurance: In addition to liability insurance, which pays to fix the other person’s car, collision insurance pays to fix your own car. Look for policies with a low deductible.
Bodily injury: If you are at fault in a collision that injures someone else, this type of insurance will cover their medical expenses and your legal fees.
If you are not at fault:
Medical coverage: This will cover your own medical expenses no matter who was at fault. Some policies may refer to this as Personal Injury Protection.
No-fault insurance: This covers medical expenses and damages repair for you, your passengers, and pedestrians regardless of who is at fault in the collision. This is good to have if the person who hits you does not have insurance or is unable to pay.
Comprehensive: Some damages will be completely outside of your control, like hail, floods, tornadoes, vandalism, and damages caused by animals.
For Finances
Credit insurance: This pays off your loan if you die or become permanently disabled.
Gap insurance: This applies to leasing vehicles only. If your leased car is stolen or totaled, leaving you with costs more than what you owe on the car itself. Standard insurance may cover the costs of the repairs, but this insurance will cover the gap in costs if you still owe more.
The Extras
There are always extra options, like care rental and towing insurance for those who are concerned about the time it takes to repair damages. If you travel frequently, you may also consider out-of-country travel. Overall, though, these extra add-ons are not essential and should be considered carefully.
