Shopping For Auto Insurance? Know These Coverage Types

If you’re shopping for auto insurance Newark DE has you covered. It’s not always easy to decide what kind of coverage is best for you though. Choosing auto insurance coverage depends on a number of factors and comparing them all can be overwhelming if you are not familiar with what is available.  If you are new to the market and don’t know where to start there are three coverage types you should be familiar with: liability insurance, collision insurance, and comprehensive insurance. Understanding the differences between them will help you to make more informed choices when you are shopping for auto insurance.

Liability Insurance 

While liability coverage is the most basic kind of auto insurance, it also happens to be the most important. This is because liability coverage is the minimum auto insurance Newark DE requires to drive legally. If you are involved in an accident and are found to be at fault, liability insurance will make sure that the other party’s expenses can be paid for. Liability insurance comes in two types. The first is property damage which will cover vehicle damage. The second is bodily injury coverage which is used to cover medical bills. Both are required to drive in the state of Delaware. 

Collision Insurance 

Collision insurance is a type of insurance that you pay so that your vehicle can be repaired of replaced in the event of an accident. Unlike liability insurance, collision insurance can be used to cover damage to your vehicle no matter who is found to be at fault for an accident. While collision insurance is not required by law, purchasing a collision policy can save you money in the event of an accident. 

Comprehensive Insurance 

While most automobile damages are caused by collisions, cars can also be damaged by vandalism, theft and inclement weather. This is where comprehensive insurance comes in. Comprehensive insurance policies are used to cover repairs for any damages that are not the result of a car crash. If you are unsure if a comprehensive policy is right for you, you might consider risk factors like weather conditions and criminal activity in your area. If you consider those things to be of concern then a comprehensive policy might be a good investment. 

While everyone’s situation is different, insurance coverage is always a good investment because it ensures that funds are available for repairs in the event of an emergency.