When it comes to car insurance, there are a variety of coverage options available. The most common type of car insurance is Bodily Injury (BI) liability coverage, which is required in almost every state. This type of coverage provides protection in the event that you cause an accident that injures or kills other people. Your car insurance company will step in to pay for the other party's medical expenses, lost wages, or funerals, as well as any legal fees you incur if the other party decides to sue you in court.
In addition to mandatory liability insurance, you may want to consider other types of optional coverage for your vehicle, such as collision and all-risk coverage. These types of coverage are not required by law, but if you have a loan or lease for your vehicle, your lender will likely require them. You may also need an SR-22 if you accumulate a lot of traffic violations or cause an accident while driving without insurance. If you add car insurance to a USAA homeowners or renters insurance policy, you could save up to 10%.
It's important to compare prices and get car insurance quotes from companies that can meet your needs. Many auto insurance companies offer education-related discounts and reward drivers who have earned a bachelor's degree, master's degree, or doctorate. Collision coverage will pay the value of your car if it is destroyed (when the repair cost exceeds the value of the vehicle) in an accident. Comprehensive coverage is also available and provides protection against theft and damage caused by natural disasters such as floods and fires.
Pay-per-mile car insurance policies are also available for those who don't drive much but still need coverage for their vehicle. Telematics-based insurance programs monitor and score real driving, such as speeding, braking and cornering. These programs can help drivers save money on their premiums by providing discounts for safe driving habits. When choosing a car insurance policy, it's important to consider all of your options and determine which type of coverage best meets your needs.
Comprehensive coverage is often the most comprehensive type of car insurance available and provides protection against theft and damage caused by natural disasters such as floods and fires.