When you purchase auto insurance coverage, which most states require you to have, you want to consider including more than the liability coverage that is required by law. This is because liability coverage only covers the damage done to the other party's property and their injuries in an accident that you have caused. If there are damages done to your vehicle or if you have suffered an injury, you will need to pay out of pocket. Here are four additional coverages you should consider to ensure that you are protected financially in case of an emergency:
- Collision Coverage: If you are in an accident that you have caused, collision coverage is going to cover the damages done to your vehicle and injuries that you have suffered, as well. Collision coverage will also cover damages if you are in an accident that didn't involve any other vehicles. For example, if you crash into a tree or flip your car, you will be covered. Collision coverage is definitely helpful for any driver to have, but especially young drivers under the age of 20 since they are more likely to be involved in a collision.
- Comprehensive Coverage: Comprehensive coverage is another way to protect yourself financially. This coverage will protect you in the case that your vehicle is stolen or damage has been done to your vehicle by a fallen tree, hail, an earthquake, and more. This should definitely be coverage you consider including on your policy, especially if you live in an area that suffers from heavy storms or in an area that has a higher crime rate.
- Uninsured Motorist Coverage: Some states will require that you have uninsured motorist coverage included on your policy, but if it doesn't you should still consider it. This will ensure that you are covered for damages by your own policy when an uninsured motorist causes an accident you have been involved in. It is estimated that there are more than 14% of people in the United States who do not carry any auto insurance, so it's definitely important to consider this coverage for your policy. This is especially true since the coverage will also protect you in instances of a hit and run accident.
- Medical Protection: Many auto insurance companies also give you the option to include some medical protection on your policy in case you are injured in an accident. This is something to consider if you don't have health insurance that provides enough coverage for you to receive free or low-cost care for serious car accident injuries.
When you consider these four additional coverages for your auto insurance policy, you can be sure you are actively ensuring your financial protection in the case of any emergency situation that is to arise in the future.