• Business

    Business Ideas

    ALL
    • In-Demand Businesses
    • Businesses That Never Fail
    • Best Passive Income Ideas for Increasing Cash Flow
    • Essential Tips To Start An Online Business
    • Best Websites To Buy Or Sell An Online Business For Free
    • Everything You Need to Know About Online Selling 
    • Current Business Trends: 9 Things to Keep in Mind
    • How to Open a Coffee Shop Business: A Comprehensive Guide
    • Effective Ways to Start your Business from Scratch 
    • The Main Types And Advantages Of Online Business
    Menu
    • In-Demand Businesses
    • Businesses That Never Fail
    • Best Passive Income Ideas for Increasing Cash Flow
    • Essential Tips To Start An Online Business
    • Best Websites To Buy Or Sell An Online Business For Free
    • Everything You Need to Know About Online Selling 
    • Current Business Trends: 9 Things to Keep in Mind
    • How to Open a Coffee Shop Business: A Comprehensive Guide
    • Effective Ways to Start your Business from Scratch 
    • The Main Types And Advantages Of Online Business

    Tips For A Successful Business

    ALL
    • Creative Business Proposal Ideas for Better Sales
    • Easy Digital Marketing Strategies for Small Business
    • Easy Steps to Develop Effective Time Management Skills
    • ClickUp, Trello or Hive?
    • Best SEO Tips for Small Businesses
    • Lessons Every Business Can Learn From Coworking Spaces
    • The Best Digital Marketing Strategies for a Real Estate Business
    • Useful Tips to Make Your E-Commerce Business Successful.
    • Why Do You Need to Track Your Spending
    Menu
    • Creative Business Proposal Ideas for Better Sales
    • Easy Digital Marketing Strategies for Small Business
    • Easy Steps to Develop Effective Time Management Skills
    • ClickUp, Trello or Hive?
    • Best SEO Tips for Small Businesses
    • Lessons Every Business Can Learn From Coworking Spaces
    • The Best Digital Marketing Strategies for a Real Estate Business
    • Useful Tips to Make Your E-Commerce Business Successful.
    • Why Do You Need to Track Your Spending
  • Money

    Invest Money

    ALL
    • Best Safe Investments
    • Investing In Real Estate
    • How To Invest: Are Your Investment Right Your Age
    • Best Alternative Investments
    • Best Investments To Beat Inflation
    • How To Invest In Collectibles
    Menu
    • Best Safe Investments
    • Investing In Real Estate
    • How To Invest: Are Your Investment Right Your Age
    • Best Alternative Investments
    • Best Investments To Beat Inflation
    • How To Invest In Collectibles

    Banking

    ALL
    • Best Savings Account
    • Best High Yield Savings Account
    • Best CD Rates
    • Best Money Market Accounts
    • Best Online Checking Account
    • Best Banking Apps
    Menu
    • Best Savings Account
    • Best High Yield Savings Account
    • Best CD Rates
    • Best Money Market Accounts
    • Best Online Checking Account
    • Best Banking Apps

    Loan

    ALL
    • Best Personal Loan
    • Best Low-Interest Personal Loans
    • Best Personal Loans for Bad Credit
    • Best Personal Loans for Excellent Credit
    • Best Debt Consolidation Loans
    • Best Student Loans
    Menu
    • Best Personal Loan
    • Best Low-Interest Personal Loans
    • Best Personal Loans for Bad Credit
    • Best Personal Loans for Excellent Credit
    • Best Debt Consolidation Loans
    • Best Student Loans

    Insurance

    ALL
    • Sproutt Life Insurance Reviews
    • eHealth Insurance Reviews
    • Cheap Car Insurance Reviews
    • Embrace Pet Insurance Reviews
    • Best Rideshare Insurance Reviews
    Menu
    • Sproutt Life Insurance Reviews
    • eHealth Insurance Reviews
    • Cheap Car Insurance Reviews
    • Embrace Pet Insurance Reviews
    • Best Rideshare Insurance Reviews
  • Forex

    Featured

    ALL
    • Best Forex Trading Courses
    • Best Forex Academy
    • Best Forex Trading Coaches
    • Best Forex Mentors
    Menu
    • Best Forex Trading Courses
    • Best Forex Academy
    • Best Forex Trading Coaches
    • Best Forex Mentors

    Learn To Trade Forex With Dumb Little Man

    ALL
    • Best Forex Brokers Review
    • Best Forex Trading Software
    • How To Trade Forex
    • How to Read Forex Charts
    • Best Forex Indicators
    • Best Forex Screeners
    • Best Time To Trade Forex
    • Best Forex Trading Tools
    • AvaTrade Review
    • CedarFX Review
    • Forex.com Review
    • Interactive Brokers Review
    Menu
    • Best Forex Brokers Review
    • Best Forex Trading Software
    • How To Trade Forex
    • How to Read Forex Charts
    • Best Forex Indicators
    • Best Forex Screeners
    • Best Time To Trade Forex
    • Best Forex Trading Tools
    • AvaTrade Review
    • CedarFX Review
    • Forex.com Review
    • Interactive Brokers Review
  • Stocks & Crypto

    Stocks

    ALL
    • Best Stock Brokers
    • Best Online Brokers for Stocks Under $100
    • Best Online Brokers for ETF Investing
    • Best Brokers for Mutual Funds
    • Best Online Brokers for Bonds
    • Best Blue Chip Stocks
    • Best Swing Trade Stocks
    • Stages of a Stock Market Bubble
    • Best Stock Investing and Trading Podcasts
    • Best Defensive Stocks to Invest
    Menu
    • Best Stock Brokers
    • Best Online Brokers for Stocks Under $100
    • Best Online Brokers for ETF Investing
    • Best Brokers for Mutual Funds
    • Best Online Brokers for Bonds
    • Best Blue Chip Stocks
    • Best Swing Trade Stocks
    • Stages of a Stock Market Bubble
    • Best Stock Investing and Trading Podcasts
    • Best Defensive Stocks to Invest

    Cryptocurrency

    ALL
    • Best Cryptocurrency Trading Courses
    • Best Cryptocurrency Brokers
    • Best Cryptocurrency Exchanges
    • Best Cryptocurrency Apps
    • Learn about Cryptocurrency
    • How To Earn Cryptocurrency
    • How to Trade Cryptocurrency
    • Best Cryptocurrencies
    • Best Crypto Trading Bots
    • Best Crypto Portfolio Trackers
    Menu
    • Best Cryptocurrency Trading Courses
    • Best Cryptocurrency Brokers
    • Best Cryptocurrency Exchanges
    • Best Cryptocurrency Apps
    • Learn about Cryptocurrency
    • How To Earn Cryptocurrency
    • How to Trade Cryptocurrency
    • Best Cryptocurrencies
    • Best Crypto Trading Bots
    • Best Crypto Portfolio Trackers
  • Health

    Health Conditions

    ALL
    • Macular Degeneration
    • Testosterone
    • Constipation
    • Hormonal Imbalance
    • Stomach Bloating
    • Sleeping Problems
    • Baldness
    • Lower Back Pain
    • Toenail Fungus
    • Mouth Sores
    • Eye Dark Circles
    • Stomach Bloating
    • Headaches
    • Face Acne
    Menu
    • Macular Degeneration
    • Testosterone
    • Constipation
    • Hormonal Imbalance
    • Stomach Bloating
    • Sleeping Problems
    • Baldness
    • Lower Back Pain
    • Toenail Fungus
    • Mouth Sores
    • Eye Dark Circles
    • Stomach Bloating
    • Headaches
    • Face Acne

    Product Reviews

    ALL
    • Diet & Weightloss
    • Exercise and Fitness
    • Beauty and Skin
    • Hair and Nails
    • Strength Training
    • Yoga
    • Dietary Supplements
    • Over-40 Supplements
    • Sexual Health
    • Dental Health
    • Men’s Health
    • Women’s Health
    • Sleep and Dreams
    • Best Weight loss Supplements
    • Best Fat Burner Supplements
    • Best Hair Growth Supplements
    • Best Vision Supplements
    • Best Memory Supplements
    • Best Natural Testosterone Supplements
    Menu
    • Diet & Weightloss
    • Exercise and Fitness
    • Beauty and Skin
    • Hair and Nails
    • Strength Training
    • Yoga
    • Dietary Supplements
    • Over-40 Supplements
    • Sexual Health
    • Dental Health
    • Men’s Health
    • Women’s Health
    • Sleep and Dreams
    • Best Weight loss Supplements
    • Best Fat Burner Supplements
    • Best Hair Growth Supplements
    • Best Vision Supplements
    • Best Memory Supplements
    • Best Natural Testosterone Supplements
  • Relationship

    Blogs and Tips

    ALL
    • Females in Relationship
    • Men in Relationship
    • Dating Tips
    • Finding yourself
    • Marriage Tips
    • Love
    Menu
    • Females in Relationship
    • Men in Relationship
    • Dating Tips
    • Finding yourself
    • Marriage Tips
    • Love

    Dating Guides

    ALL
    • Best Catholic Dating Sites and Apps
    • Best Christian Dating Sites
    • Best Pagan Dating Sites and Apps
    • Best Teen Dating Sites and Apps
    • Best Dating Apps for College Students
    • Asian Dating Guide
    • Japanese Dating Guide
    • Filipina Dating Guide
    • Indian Dating Guide
    • Black Dating Guide
    • Russian Dating Guide
    • Best Free Trucker Dating Sites and Apps
    • Best Dating Sites and Apps for Marriage
    • Best Free Crossdresser Dating Sites and Apps
    • Best German Dating Sites
    Menu
    • Best Catholic Dating Sites and Apps
    • Best Christian Dating Sites
    • Best Pagan Dating Sites and Apps
    • Best Teen Dating Sites and Apps
    • Best Dating Apps for College Students
    • Asian Dating Guide
    • Japanese Dating Guide
    • Filipina Dating Guide
    • Indian Dating Guide
    • Black Dating Guide
    • Russian Dating Guide
    • Best Free Trucker Dating Sites and Apps
    • Best Dating Sites and Apps for Marriage
    • Best Free Crossdresser Dating Sites and Apps
    • Best German Dating Sites
  • Trading School

An Easy-To-Understand Guide To Car Insurance Coverage Options

Written and Published by Dumb Little Man on August 21, 2020 - Reviewed by Dumb Little Man

 An Easy-To-Understand Guide To Car Insurance Coverage Options
Automotive Money
by Dumb Little Man August 21, 2020

If you have car insurance, you most likely know that there are several car insurance coverage options available. Understanding what they all mean can help you in the event of an accident. You’ll know exactly what your insurance company will and won’t cover, and this can remove any nasty surprises you could get if you don’t understand your insurance. We’ll quickly go over everything you need to know below.

Five Car Insurance Coverage Options

A lot of states require that you carry more than one of these coverage options or complete coverage, but it varies from state to state. You can contact your local insurance agency to see what your particular state requires you to have.

Collision and Comprehensive Coverage

guide to car insurance coverage

If you purchased a car and used a company to finance it or if you leased a vehicle, the lienholder will require you to have comprehensive and collision coverage. Once you pay your vehicle off, both of these coverage types usually become completely optional.

Collision coverage is exactly what it sounds like. If you damage your car by colliding with an object or another vehicle, this coverage will help you replace or repair it. Collision coverage will help cover the costs to protect your car. Still, property damage liability will help pay for any damage you cause the other person’s vehicle if you cause the accident.

If you have comprehensive coverage, you have insurance that will help pay to replace or repair your vehicle if someone steals it or it gets vandalized. It also covers animal damage and things like hail. Both types of coverage come with limits and deductibles. The limit will dictate the maximum amount of money your insurance company will payout in the event of an accident. The deductible is the amount of money you have to pay out of your pocket before your insurance benefits kick in and pay anything.

Liability

One of the most popular coverage options you have is liability. You can split it into property damage liability and bodily injury liability. If you get into an accident, bodily injury liability will help cover the medical costs for the other person. If you damage another person’s property during an accident, property damage liability will help pay for it.

Every state will set limits on the liability coverage your insurance must offer. The insurance coverage will outline the maximum amount they’ll pay for property damage, bodily injury per person, and bodily injury per accident. You can go above and beyond these requirements and buy an insurance policy that offers higher liability coverage maximum caps. You’ll pay higher premiums doing this, but it’ll offer you more protection in the event of an accident.

Personal Injury Protection and Medical Payment Coverage

guide to car insurance coverage option

Having coverage for any medical payments are optional, but many insurance companies will recommend it. Medical payment coverage will help to pay for the cost of your or any passenger’s medical expenses they incur after an accident like emergency room visits, x-rays, or surgery. It doesn’t matter who caused the accident with this coverage option.

Another coverage option you have is personal injury protection. This isn’t available in every state, but some states do require that you carry it. This coverage works very similarly to medical coverage. As long as you have a covered loss and need medical treatment, this coverage can kick in and help pay for the medical costs. It can also potentially cover other expenses you have while you recuperate from the accident like lost income or childcare expenses.

Rental Reimbursement

This is optional insurance coverage. If you choose to have this coverage, your insurance company will help to pay for the cost of renting a vehicle while a shop fixes yours after a covered event. Check with your insurance company’s limits with rental reimbursement coverage. It usually comes with a set number of days and a specific dollar amount they’ll payout per day.

Uninsured or Underinsured Motorist

If you have uninsured motorist coverage, your insurance will protect you if you get into an accident with someone who doesn’t have insurance. Normally if you sustain injuries in an accident that the other person causes, their liability insurance will help to pay for any medical expenses you incur. However, this won’t happen if the driver that caused the accident doesn’t have auto liability coverage. If this happens, your uninsured motorist coverage would kick in and help pay for any medical expenses you rack up in response to the accident.

If you have underinsured motorist coverage, it works the same way. If the other driver causes the accident has insurance with liability coverage that has lower limits than will trigger your state’s underinsured motorist coverage to kick in and pay, your coverage will pick up the costs. You do want to check with your state’s limits and insurance requirements about this coverage, so you’re not stuck with huge medical bills.

Car Insurance Coverage – Frequently Asked Questions

1. Is there a such thing as full coverage?

Technically, there is no such thing as getting full coverage with your car insurance. However, you can customize your policy by picking and choosing which coverage options you want to have to help protect yourself and your passengers in the event of an accident.

2. What is a car insurance deductible?

The deductible is the set amount you have to pay out of your pocket before your insurance company will pay for a covered accident or loss. Popular deductible amounts range from $500 to $1,000. The higher your deductible is, the lower your premium will be.

3. Can you change your coverage?

Yes. Many insurance companies allow you to change your coverage options any time you like before an accident. You can contact an agent or log into your account and look at your policy. You’ll see an option to make changes and pick the date you’d like the changes to go into effect.

Like this Article? Subscribe to Our Feed!

Author: Dumb Little Man

Life tips and life hacks for happiness and prosperity.

  • Web
  • |
  • Twitter
  • |
  • Facebook
  • |
  • LinkedIn
  • |
  • More Posts(427)

Share This:

  • 0
    Facebook
  • 0
    Twitter
  • 0
    Linkedin
  • 0
    Email
Previous post
Next post

FOREX REVIEWS

Get daily tips and tricks for making your best home.
Follow us :
Instagram Pinterest Facebook Twitter
  • About Us
  • Advertise
  • Become a Contributor
  • Privacy Policy
  • Contact
Menu
  • About Us
  • Advertise
  • Become a Contributor
  • Privacy Policy
  • Contact
  • About Us
  • Advertise
  • Become a Contributor
  • Privacy Policy
  • Contact
Menu
  • About Us
  • Advertise
  • Become a Contributor
  • Privacy Policy
  • Contact
  • About Us
  • Advertise
  • Become a Contributor
  • Privacy Policy
  • Contact
Menu
  • About Us
  • Advertise
  • Become a Contributor
  • Privacy Policy
  • Contact
Get daily tips and tricks from Dumblittleman!
Your subscription could not be saved. Please try again.
Success! You are now a Dumb Little Man! :)
Follow us :
Instagram Pinterest Facebook Twitter
Browse