Whether you’re buying a car for the first time or you’re thinking about changing your policy, it’s helpful to know more about the common types of car insurance that are available. Some policies may be required as the bare minimum in your state, whereas others are optional and offer additional protection, if you prefer.
Six common types of auto insurance include:
Uninsured motorists coverage
This protects drivers against uninsured drivers who were at fault in an accident, and in some states, may also pay out if you were hurt or if your car was damaged by a hit-and-run driver. Strongly consider this type of coverage, as many drivers on the road are uninsured.
Comprehensive coverage compensates for losses to the vehicle resulting from theft, natural disasters, collisions with animals, falling objects, and other events. This type of policy is usually mandatory if you leased your car or if you took out a car loan.
A collision policy compensates for car damage resulting from a collision with an object or another car. Choose as large a deductible as you can feasibly afford to pay out-of-pocket in order to keep premiums low. Consider opting out of this coverage completely if you drive an older vehicle, as this type of policy is usually restricted to the cash value of the vehicle.
Liability policies can actually be broken down into two main categories: coverage for personal property and coverage for bodily injury. Most states mandate that drivers have some type of liability coverage; drivers must adhere to their state’s requirements in order to get a driver’s license and register their car.
If the driver and/or passengers are injured in an automobile collision, medical payments coverage will compensate for medical costs incurred.
Personal injury protection
Personal injury protection (PIP) is usually mandatory in no-fault states. This type of policy includes a wider range of medical expenses than what a basic medical payments policy covers. PIP will also compensate for loss of wages and the replacement of the services of an individual who was hurt in a car collision.
Are you the recipient of an annuity or structured settlement payment stream, and the long-term structure is no longer convenient the way it may have been initially? Receiving some or all of your money in one lump sum payment can make it easier to catch up on bills and take care of day-to-day expenses. Contact Peachtree Financial Solutions today to find out how you can sell some or all of your future payments and receive your money in a lump sum cash payout.
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.