There are five major types of auto insurance in the United States: liability, collision, comprehensive, non-standard, and UBAA.
If you are buying a new car, ensure the dealer is aware of your state’s requirements and get adequate coverage. For questions in Spartanburg, SC, consult Allsurance Group.
What Else to Know
In the United States, there’re mainly comprehensive and liability. Most people buy comprehensive coverage, as it’s required by law to cover damage to others and their property.
However, liability insurance can also help protect you against lawsuits if you’re in an accident. What you purchase depends on your needs and the risks you face. To find the type that is right for you, talk to your agent about the different types of coverage and how they work.
There are also policies that cover your car’s parking and wind/riding/snow/hail. If you have a car with a high value, you can purchase a “luxury” policy that offers more coverage for a higher price.
- Liability: It insures if you injure a person or someone’s damage. The coverage amount is typically between $100,000 and $300,000 per incident.
- Collision: It caters to repairs after an accident with another vehicle. The deductible is usually between $100 and $1,000. This means you have to pay out of pocket for some expenses before your insurance starts paying for repairs.
- Comprehensive: This type of coverage helps pay for damages to your car from non-collision incidents like theft or vandalism. It also covers weather-related damages like hail or flooding up to a certain amount per incident.
- Rental Reimbursement: If you end up having to rent a car after an accident, this coverage will cover the cost of renting one while yours is being repaired. It can also cover fuel costs if your vehicle needs to be towed back to your home or business because it’s not drivable due to damages that aren’t covered by other insurance policies
You can purchase other kinds of coverage such as anti-theft. The most important thing is to research the different types of insurance and find one that best fits your needs. For help in Spartanburg, SC, visit Allsurance Group.