When out looking for the best auto insurance policy, it is important that you understand the different types of coverage available. After all, you want to be sure that you will get exactly what you are paying for. Unfortunately, most drivers forget about this just because they are in dire need of cheap car insurance.
If you happen to be in this category, then you might have no idea about the numerous benefits you are missing out on. Keep in mind even the slightest of mistakes you make will end up costing you big time. To make your quest easy, here are the different types of coverage that pay for your car repair.
Collision Insurance
First and foremost is collision insurance which pays for repairs or replacements to your vehicle in the event of an accident. This is mainly the case when the accident involves another vehicle or a stationary object. Remember, most insurance companies require drivers to have comprehensive coverage before adding collision.
Comprehensive Insurance
Comprehensive insurance, on the other hand, covers damages to your vehicle not caused by a collision. This can either be fire, falling objects, natural disasters, or even vandalism. With this type of coverage, you will be reimbursed the ACV amount without your deductible if your vehicle needs to be replaced.
Rental Car Insurance
Last but not least is rental car insurance coverage. Even though this type of insurance is optional, it helps meets the cost of a rental vehicle while your car is at the repair shop. In most cases, there is a per-accident, per-day, and maximum days limit for this coverage. Be sure to know what it entails before including it in your plans.
These are the three auto insurance coverage types that can cover your car while it is in the body shop. Spend some time examining the pros and cons of each before deciding on anything. Through this action, you will not live a life of regrets way after you start paying for the auto insurance premiums with your insurer.
