Understanding Insurance Policies

Understanding Insurance Policies

3 Situations In Which You Will Need Optional Auto Insurance Coverage

Samantha Reynolds

Under current laws, drivers are only required to purchase liability car insurance. All other types of automotive insurance coverage are considered optional. Unfortunately, far too many drivers automatically choose to decline these types of optional coverage in an effort to save money. If you are considering taking this same approach, you should know that choosing to decline optional coverage can actually cost you more in the long run. This is because there are several very common situations in which liability coverage alone will not protect you. Below you can learn more about three of the most common situations in which you will need optional automotive insurance coverage in order to avoid high out-of-pocket expenses.  

#1: You Are At Fault For Causing An Accident That Damages Your Vehicle

One of the biggest problems with choosing to purchase an automotive insurance policy that only offers liability coverage is that this insurance coverage only offers payment to the other driver if you damage their vehicle. If your own vehicle is damaged in an accident that you are at fault for causing, you will need to pay for any necessary repairs out of your own pocket. You can avoid paying these high repair bills by choosing to add collision coverage to your policy. This type of optional coverage will provide payment for the repair or replacement of your vehicle if you are found to be the at-fault driver. 

#2: You Are Hit By A Driver That Does Not Have Car Insurance

While all the drivers on the road are supposed to have liability insurance, the fact is that there are people who choose to break the law and drive without insurance. If you are in an accident with an uninsured driver, you will need to seek any damages through the legal system since they do not have an insurance company with which you can file a claim. This can be a very long process and there is no guarantee that you will be able to collect on any judgment the court issues. In this situation, having uninsured motorist coverage included in your auto insurance policy can be a life saver. This is because uninsured motorist coverage allows you to file a claim with your insurance company if the other driver does not have insurance. 

#3: Your Vehicle Is Damaged By Severe Weather Or Natural Disaster

There is absolutely nothing you can do in order to prevent vehicle damage as the result of severe weather or a natural disaster. Unfortunately, you will still be stuck paying for any necessary repairs out of your own pocket if your insurance policy does not offer comprehensive coverage. Choosing to add this type of coverage to your auto policy will ensure that you are protected from a wide range of damages that may be caused as the result of events other than a car accident. 


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About Me
Understanding Insurance Policies

After I moved out of my parent's home, I started learning more and more about insurance policies. I was involved in a bad car accident, and I ended up working with my car insurance company as well as my medical and dental insurance companies. I paid my premiums and enjoyed coverage, but I didn't really understand how the entire insurance claim process worked. I wanted to make this blog to help other people like me to learn more about insurance coverage. Check out this blog for more details on insurance coverage, how to file a claim, and what you should expect throughout the shopping process.