Purchasing car insurance coverage isn’t as simple as it sounds. Coverages differ from one provider to another, and from one type to another. Whether it’s for personal or business use, it’s helpful to know your options.
This article will talk about the types of motoring insurance you should buy. Let’s dive right in!
You need rideshare insurance if you’re driving for ridesharing companies like Uber or Lyft. Personal car insurance policies are not enough because they don’t typically cover the “business use” of your car.
Many insurers offer a ridesharing insurance endorsement that adds to your existing personal car insurance policy. Others offer full ridesharing policies that combine both personal and business coverage into one policy.
Click here to find Uber insurance and compare your options.
Liability insurance policies help when a car accident is determined to be your fault. And it comes in two main forms: bodily injury and property damage.
Bodily Injury Liability
Bodily injury liability will cover the injuries that the other party experiences. It covers medical expenses and even lost wages.
For instance, if an accident happens and the other person broke their leg, the bodily injury will pay for x-rays, surgery, and lost workdays.
This type covers damages to another person’s property because of a collision. Typically, this involves cars. However, coverage may also include fences, buildings, mailboxes, lampposts, etc. Property damage insurance does not cover damage to your properties.
You must also consider vehicle coverage, especially if your car is newer or more expensive. However, the law does not require you to have this. The costs and extent of coverage may also vary.
This coverage pays for the car repair when your vehicle suffers damages due to collision. This type commonly applies after typical accidents, like fender benders, with one or more drivers. It does not cover engine failure or similar events caused by the natural aging of your vehicle.
Comprehensive coverage applies to damages not caused by collisions. Examples include damages caused by:
- Hitting an animal
- Falling objects
This type of insurance is optional.
However, if your car is newer, more expensive, or leased, adding comprehensive coverage to a collision policy is advisable.
Other Optional Motoring Insurance Policies
You should also consider the following optional motor insurance policies:
- Medical payments coverage – covers the treatment of injuries for you or your passengers at the time of an accident.
- Personal injury protection – covers you, your family, or anyone riding in your car for injuries regardless of who caused the accident.
- Excess medical payments – covers medical expenses after an accident. This policy has a higher limit than basic medical payments or personal injury protection.
- Residual bodily injury liability – within no-fault insurance states, this policy protects you, your family, and other passengers if you are sued because of injuries or death caused to others.
It’s wise to shop around to compare different coverage types. Consider the rates you’ll get with each provider. Decide based on your lifestyle, possessions, local health care, and, more importantly, your peace of mind.