What are the Possible Types of Insurance?
Motorists can consider a number of different options when they're looking for the right policy above what's required by law. The more options they choose, the more expensive the policy will be. However, the more options they choose, the more coverage they'll have and the less they'll need to pay out of pocket if anything happens.
- Comprehensive Insurance - This type of insurance covers things that could happen to a vehicle other than an accident. This includes weather damage, damage from a stray ball or rock thrown by a kid, theft and damage from someone breaking into the vehicle, deer accidents, broken glass and more. This is often required if a person has a loan, but it's typically a good idea for any vehicle owner to have it if they'd like as much coverage as possible.
- Collision Insurance - Not all accidents involve another motorist. If the vehicle driver is injured or the vehicle is damaged due to an accident with a stationary object such as a tree or pole, or if the vehicle flips over in an accident that doesn't involve another vehicle, collision insurance is going to cover the damages. This is also something that might be required if the vehicle has a loan, but is a good idea to get no matter what.
- Gap Insurance - If a vehicle cannot be repaired after an accident, it will need to be replaced. Unfortunately, if the driver has a loan on the vehicle, the amount paid by the insurance company might not cover the full amount due to the loan company. This is because the value of a vehicle depreciates quicker than the person pays it off and the insurance company covers the value of the vehicle. Gap insurance will cover the difference in this situation so the owner doesn't have to pay the difference on their own.
- Rental Reimbursement - Most of the time, the motorist will need to rent a vehicle while their vehicle is being repaired. If the repairs are because of an accident covered by a claim with their insurance policy, rental reimbursement can cover the amount they'd need to pay to rent a vehicle while the repairs are being completed.