Posted on: August 13th, 2014 by The Accel Group | No Comments

In the event of an accident, The Accel Group wants to ensure you have the best car insurance coverage for your family and vehicles. Determine the perfect amount of car insurance coverage needed by staying informed of the many different types of coverage available.

Types of Car Insurance Coverage

 

Physical Damage Insurance

Physical damage car insurance coverage covers the cost of damage to your vehicle or a rented vehicle and includes collision and comprehensive insurance.

 

Collision & Comprehensive

Collision insurance covers the damages made to your car in the result of an accident that is your fault, or if someone hits your car and leaves the scene or does not have insurance.

Comprehensive car insurance coverage pays for replacing or repairing your auto after mishaps other than collision, including: fire, theft, vandalism, weather damage or hitting an animal.

For these physical damage coverages you choose the deductible you want to pay, and typically are reimbursed at actual cash or diminished value. Some companies offer replacement cost coverage at your request.

 

Liability

In most states, liability car insurance coverage is often required by law and many states set a minimum amount of liability coverage you must purchase.  Liability insurance covers the cost of an accident that is the driver’s fault.  Medical bills and damage of property or structure involved in the accident is covered under liability, however your own car and medical expenses are not covered.  Liability coverage can be purchased in different amounts that should be taken into consideration when determining the amount of car insurance coverage needed.

 

Uninsured and Under-insured Liability

Uninsured and under-insured liability coverage protects you in the result of an accident with a party that has either no or very little insurance coverage.  Although law requires all motorists to hold insurance, not all do or only purchase the minimum required, which can often be very low.  This type of car insurance coverage pays you for medical expenses you suffer from an accident caused by a driver with little or no insurance.

 

Medical Coverage 

Medical payments coverage helps pay for medical related bills acquired due to an accident that health insurance may not cover. Medical payment coverage can also help pay for funeral costs, injuries of passengers, injuries sustained from being hit by a car as a pedestrian and dental care as a result of an accident. Depending on state insurance laws, you can purchase medical payments or Personal Injury Protection coverage.

 

Personal Injury Protection (Body Injury) 

Personal Injury Protection, also known as “no-fault insurance”, exists to cover medical costs associated with any accident regardless of who was found at fault.  Under personal injury protection coverage, both you and your passenger’s medical bills are covered up to your coverage’s limit.  Personal Injury Protection also covers lost wages due to injury and funeral expenses. Only specific states offer Personal Injury Protection coverage, however some states require drivers to carry it.

 

Additional Car Insurance Coverage to Consider

 

Recreational Vehicles

Protection for all of your for-fun vehicles such as RV’s, watercrafts, snowmobiles, ATVs, motorhomes and trailers can be provided with recreational vehicles coverage.

 

Classic Car Policies

Special policies can be made for antique, exotic, classic, or replica vehicles.  Coverage on custom trucks or motorcycles is also available.

 

Towing or Emergency Road Service Coverage

Towing or Emergency Road Service Coverage helps to cover the costs associated with towing, jump starting, breakdown or lock out of your vehicle.

 

Rental Reimbursement

Rental reimbursement car insurance coverage pays for the cost of driving a rental car while your car is being fixed or replaced due to an accident, theft or severe weather.  Many insurance companies cover rentals on a per-day, per-accident limit.  For example, the insurance company will pay a specific amount per-day to rent a car, until the per-day expense reaches the total per-accident amount.  If you only have one car and rely on your vehicle daily, rental reimbursement insurance will help make sure you are covered to acquire a rental car in the event of damage to your vehicle.

 

GAP/Lease coverage

Guaranteed Auto Protection or GAP insurance protects drivers from depreciation of a vehicle they still owe money on.

Lease coverage is very similar to GAP Coverage in that it covers the depreciation of a vehicle.  However, lease coverage will only cover a specific percent of the difference in cost owed and cost of the vehicle.

 

Umbrella Coverage

Umbrella Coverage provides drivers with an ‘umbrella’ of protection against many different factors caused by an accident that was the driver’s fault. Umbrella protection covers expenses only after liability protection is expended.  Umbrella coverage generally covers injuries and damage caused by you in an accident but will not cover personal medical expenses or damages to your own vehicle.  An umbrella policy could potentially save you from the huge financial burden caused by a severe car accident that your liability insurance cannot completely cover.

 

For a quote on car insurance or for any questions about your current car insurance coverage, contact The Accel Group