When it comes to auto insurance, understanding the types of coverage available and determining which ones you need can be overwhelming. With so many options, how do you decide what coverage is essential? In this blog, we’ll break down the key types of auto insurance coverage, helping you make informed decisions about protecting yourself and your vehicle on the road.

1. Liability Coverage

Liability coverage is the foundation of any auto insurance policy. It’s also required by law in most states. This coverage is divided into two parts:

• Bodily Injury Liability: Covers medical expenses, lost wages, and legal fees if you’re at fault in an accident that injures someone else.
• Property Damage Liability: Covers the cost of repairs or replacement if you damage another person’s property, such as their vehicle or a structure.

How much should you have?
It’s crucial to carry enough liability coverage to protect your assets in case of a severe accident. Most experts recommend a minimum of $100,000 per person and $300,000 per accident for bodily injury liability, along with at least $100,000 for property damage liability.

2. Collision Coverage

Collision coverage pays for repairs to your vehicle if you’re involved in an accident, regardless of who is at fault. This coverage is especially important if you’re driving a newer or more valuable car.

How much should you have?
If your vehicle is financed or leased, your lender may require collision coverage. Even if it’s not required, it’s a wise investment to ensure your car is protected. The amount of coverage you need should at least equal the value of your car.

3. Comprehensive Coverage

Comprehensive coverage protects your car against non-collision-related incidents such as theft, vandalism, fire, and natural disasters. It also covers damage from animals, like hitting a deer.

How much should you have?
Like collision coverage, comprehensive coverage is typically required by lenders for financed or leased vehicles. If you own your car outright, consider whether the value of your car justifies the cost of comprehensive coverage.

4. Uninsured/Underinsured Motorist Coverage

Unfortunately, not everyone on the road carries adequate insurance. Uninsured/underinsured motorist coverage steps in to protect you if you’re involved in an accident with a driver who has little or no insurance.

How much should you have?
This coverage is vital, as it ensures you won’t be left footing the bill for an accident caused by an uninsured or underinsured driver. Coverage limits should align with your liability limits to offer maximum protection.

5. Personal Injury Protection (PIP) or Medical Payments Coverage

Personal Injury Protection (PIP) or Medical Payments coverage helps pay for medical expenses for you and your passengers after an accident, regardless of who is at fault. PIP may also cover lost wages and other related costs.

How much should you have?
The amount of PIP or Medical Payments coverage you need depends on your health insurance plan and whether you want extra protection for medical costs that might arise from an accident.

6. Gap Insurance

If you’re financing or leasing a new car, gap insurance is worth considering. It covers the difference between what you owe on your car loan and the car’s actual cash value if your vehicle is totaled or stolen.

How much should you have?
Gap insurance is particularly important for new cars that depreciate quickly. If you owe more on your car loan than the car’s current value, this coverage could save you thousands of dollars.

7. Roadside Assistance

Roadside assistance can be a lifesaver if you’re stranded due to a breakdown, flat tire, or other roadside emergencies. It typically covers towing, fuel delivery, lockout service, and more.

How much should you have?
Consider this coverage if you frequently travel long distances or drive an older vehicle. The peace of mind it provides is often well worth the modest cost.

Conclusion: Tailoring Your Coverage

The ideal auto insurance coverage depends on several factors, including your state’s requirements, the value of your vehicle, your driving habits, and your financial situation. It’s important to review your policy regularly and adjust your coverage as your needs change.

Ready to review your auto insurance and ensure you have the right coverage in place? At The Endeavor Agency, we can help you find the best policy to protect you on the road. Get an instant quote today and see how much you could save!

For personalized assistance or if you have any questions, don’t hesitate to reach out. We’re here to help you navigate your auto insurance needs with confidence.

Contact us today for a free quote and take the first step towards better protection on the road!