Understanding Auto Insurance: What Coverage Do You Really Need?

Auto insurance is a necessity for anyone who owns or operates a vehicle. It provides financial protection in the event of an accident, theft, or damage. However, understanding what coverage you truly need can be overwhelming. Here’s a breakdown of the key types of auto insurance coverage:

• Liability Coverage: This is mandatory in most states and covers damages you cause to others in an accident. It includes bodily injury liability (medical expenses for injured parties) and property damage liability (repairs to damaged property).
• Collision Coverage: Pays for repairs to your vehicle if it’s damaged in an accident, regardless of who is at fault.
• Comprehensive Coverage: Covers non-collision-related incidents like theft, vandalism, or natural disasters.
• Uninsured/Underinsured Motorist Coverage: Protects you if you’re hit by a driver with little or no insurance.

When selecting a policy, consider factors like your car’s value, your driving habits, and your financial situation. Opting for higher deductibles can lower premiums, but ensure you can afford the out-of-pocket costs.