There are many different types of auto insurance available today. There is a liability, collision, comprehensive, and medical payments coverage, to name a few. But what does each one do? Do you need all four? Or can you get by with just one type of coverage? Read on to find out the answer.
1. Liability Insurance
Liability insurance covers the losses and damages that may occur to another person or their property if you cause an accident. The main thing that this type of insurance protects is the financial costs associated with an accident that’s your fault.
If you are sued, this coverage can help pay for injuries and damage to others resulting from accidents such as medical care, lost earnings, damaged property, and court costs. A driver’s liability insurance usually has a specific limit of coverage. If the expense is more than that amount, that driver is responsible for paying the additional costs.
2. Collision Insurance
Collision insurance helps cover costs associated with damage to your vehicle resulting from a collision with another car or object, such as a tree. Suppose you are responsible for damages to your vehicle in a collision. In that case, collision coverage will pay for repairs minus any amount of deductible you have agreed to when signing up for the insurance.
3. Comprehensive Insurance
Comprehensive insurance is a broad term that helps cover losses that do not result from a collision with another vehicle or object. This includes weather damage, theft, fire, and vandalism. Comprehensive policies usually cover more than just your vehicle with the additional options of losing personal belongings left inside your car or coverage for injuries suffered by yourself or passengers in an accident.
4. Medical Payments Coverage
Medical payments coverage pays for medical expenses you or your passengers incur after a car accident, regardless of who is at fault. These types of insurance usually limit how much they will pay per person and a maximum amount available per accident.
Looking for Auto Insurance in Baraboo, WI?
It’s essential to understand the types of auto insurance available, so you can pick out what you need. Do not hesitate to contact Johnsen Insurance to discuss your options further.
