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Which car insurance coverage should I purchase?

The monetary amounts of insurance you purchase are at your discretion. However, the state in which you reside will have mandates as to the forms of coverage and minimum amounts you must have. You can contact your local Department of Motor Vehicles to find out what the specifications for your state of residence are. Although there are minimum coverage amounts required, you might want to consider raising your limits. If the monetary amounts of insurance you purchase are enough to cover the costs of another party's medical expenses or property damage repairs, you will be held liable for the remainder of the balance. To raise your limits may cost you a bit of extra money, but the potential benefits can provide peace of mind should you be involved in a collision.  

Liability insurance is the most common form of insurance you may be required to carry. This form of coverage has two subsections: bodily injury protection and property damage protection. If you are deemed to be at fault in an accident, this form of insurance will assist in paying for another party's medical expenses and car repairs. However, it will not assist you with any expenses you may incur for your vehicle or medical bills.

Collision insurance is another common form of insurance that is often found in conjunction with liability insurance. If you car is damaged in an accident, this form of coverage will provide a monetary amount towards the cost of your repairs that will not exceed the current market value of your vehicle. You are required to carry collision insurance if you own a vehicle that has an outstanding loan on it.  

Comprehensive insurance is an optional form of coverage that acts as a supplement to collision insurance. It will absorb the full cost of repairs to your vehicle. Certain states may require their motorists to maintain personal injury protection insurance or uninsured motorist protection. Personal injury protection insurance provides a certain amount towards medical expenses you or your passengers may incur in an accident. Uninsured motorist protection will assist in the cost of your property damage repairs if you are struck by another motorist who is uninsured or underinsured. GAP insurance is still another popular form of optional coverage. If you have an outstanding loan on a vehicle, GAP insurance will step in to pay off the remainder of the loan owed after the insurance company has extended you a settlement offer.  

There are many forms of coverage available to motorists. Each one has a different function and is accompanied by different pricing. In order for you to obtain a policy with your desired coverage at an affordable rate, you should utilize price comparison techniques when shopping around. This sort of technique allows you to receive multiple price quotes from different insurance providers on a policy you may be interested in. The more options you have in choosing coverage, the higher the likelihood that you will find what you desire at a low rate.


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