As a first-time driver, figuring out what type of car insurance is required and what type is optional can feel a little overwhelming. Here is a quick breakdown of the difference between required and optional coverage that will help you determine what type of car insurance you really need.
Required Coverage
Each state has their own laws reguarding required coverage. In generally, most states require you to carry a minimum amount of car insurance. The minimum in your state is what your insurance agent is talking about when they refer to your “required coverage.”
Generally, required coverage falls under the umbrella of liability insurance. Liability insurance provides you with the finacial means to pay for medical bills and property damage if you cause an accident. …show more content…
Optional Coverage
All other types of car insurance that fall outside of the requried minimum in your state is generally refered to as optional coverage. It is considered optional since it is not required by your state; however, if you have a loan on your car or if you want to cover your financial investment in your car, it’s not really optional.
There are multiple types of optional coverage that you can purchase. The most common is collision and comprehensive coverage. If you are in an accident, collision insurance will cover the cost of any damage that your own vehicle sustains. Comprehensive coveage covers damage that your vehicle experiences due to events other than auto accidnts, such as vandalism, weather conditions and animal collisions.
If you have an auto loan, most insures will require you to carry collision and comprehensive coverage so that in the event of a loss, you will still be able to pay back your
Required Coverage
Each state has their own laws reguarding required coverage. In generally, most states require you to carry a minimum amount of car insurance. The minimum in your state is what your insurance agent is talking about when they refer to your “required coverage.”
Generally, required coverage falls under the umbrella of liability insurance. Liability insurance provides you with the finacial means to pay for medical bills and property damage if you cause an accident. …show more content…
Optional Coverage
All other types of car insurance that fall outside of the requried minimum in your state is generally refered to as optional coverage. It is considered optional since it is not required by your state; however, if you have a loan on your car or if you want to cover your financial investment in your car, it’s not really optional.
There are multiple types of optional coverage that you can purchase. The most common is collision and comprehensive coverage. If you are in an accident, collision insurance will cover the cost of any damage that your own vehicle sustains. Comprehensive coveage covers damage that your vehicle experiences due to events other than auto accidnts, such as vandalism, weather conditions and animal collisions.
If you have an auto loan, most insures will require you to carry collision and comprehensive coverage so that in the event of a loss, you will still be able to pay back your