What are the Five Different Types of Car Insurance? | Save Money Tricks |
hi guys it's Devin Howard today I'm
going to be telling you about the 5 different types of auto insurance
coverage so you can know exactly what you're getting into when you go to get a
new auto insurance policy now let's get into it the first type of car insurance
is collision coverage if you want to make sure that the insurance company is
going to pay for the damage done to your car you definitely want collision
coverage so collision coverage encompasses car accidents or if you
happen to hit like a tree or a guardrail or something else and damage is done to
your vehicle if your car has more damage than it's actually worth like if your
car is worth $5,000 but you have $7,000 worth of damage
they will deem it totaled and then they'll pay for you to get a new car
they'll give you a check for the current value of the car so you'll get $5,000
check which you can use to buy yourself something new the next type of insurance
is liability insurance now this is the most basic type of insurance and a lot
of US states require that you have it this is what protects other drivers on
the road and covers property and medical bills if the accident that you got into
was your fault it's important to note that if you are the one who is at fault
you are required to pay for the damages even if it exceeds your coverage because
of that it can be kind of nice to purchase higher liability insurance so
that you're protected next up we have comprehensive coverage this is for
damages that are not related to auto accidents for example natural disasters
or theft this type of insurance is more costly than the others but if you
purchase anti-theft devices or tracking devices that can actually lower your
rates so if a tree hits your car or if someone breaks into it you know you'll
be covered if you have comprehensive coverage next up we have uninsured or
underinsured motorist insurance now this is helpful if you get into an accident
with a person who doesn't have insurance altogether or maybe they do have
insurance but it's a very low low insurance plan so even though an
accident might be their responsibility like they may be responsible for
covering the damages if they don't have the coverage required for all the
repairs then it'll fall on your shoulders this is never really a
mandatory insurance coverage plan but if you just ought to make sure you're fully
protected it's worth looking into finally we're talking about personal
injury protection so this insurance plan covers medical bills for you and other
people involved one thing to note is that it's not available in all states so
if you get into an accident that wasn't your fault and you are required to pay
for the medical bills for you and whoever else was in your car if you're
ever afraid that you may not be able to pay for those bills you should
definitely talk to your insurance provider about this type of coverage
just to make sure that you have all corners covered there are a lot of
different things that go into finding out which auto insurance coverage is
going to be best for you and I hope this video broke it down a little bit for you
if you guys have any other tips or tricks as to how to decide what type of
coverage you want let me know in the comments below don't forget to subscribe
and tap the bell for notifications and always remember to compare those auto
insurance quotes so you get the best rate all right you guys so I hope you
found this video helpful I will see you guys next time
