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No matter how good a driver you are, accidents happen. Car accidents can be serious and may put you under a sudden financial burden. Getting quality car insurance will help you protect yourself in such cases. However, insurance policies can be expensive if you’re not careful about what kinds of coverage you sign up for. This article discusses different kinds of car insurance coverages and what you can do to avoid going over what you can afford.

Familiarizing Yourself With Car Coverages

Each state has regulations on car insurance. It is best to check your state’s minimum requirements for coverage. Once you determine which ones are mandatory, you can put more thought into what coverage you need on top of what’s been prescribed by your state. In general, the different kinds of coverage you should consider are as follows:

  1. Collision – In case of a traffic accident, collision insurance will help pay for damages to your vehicle. It will help cover costs for repairs and necessary car part replacements.
  2. Comprehensive – Things such as falling tree branches, or extreme weather events like floods and hail could damage your car. Comprehensive coverage protects your vehicle from damages caused by things other than a car crash.
  3. Personal injury – In case of a car crash, you could suffer injuries. Personal injury coverage helps you pay for medical treatments you may need after a car accident. Depending on the policy you sign up for, you can also get coverage for injuries suffered by your passenger.
  4. Bodily injury and property damage liability – If you’re partly responsible for a car crash, you could be liable for damages to the other driver’s person or vehicle. This coverage can help pay for their car repair and medical bills.
  5. Uninsured and underinsured motorist’s liability – In case of a car accident where the other driver is responsible, their insurance should pay for any personal injuries or damages to your car. However, you may encounter drivers who are not sufficiently insured and who don’t have enough funds to pay for your medical treatment and car repair. Uninsured or underinsured motorist’s liability coverage allows you to cover your expenses in such cases.

Apart from these basic coverages, insurance companies may offer other items like glass coverage. This option will cover damages to your windshields and car windows. Another optional item is gap insurance, which covers the depreciation of your car’s value over time. Depending on your needs, considering such optional coverages could be worth your while.

Keeping Your Car Insurance Within Budget

It’s easy to go over your limit when you’re shopping for car insurance for the first time. Insurance agents can make quite the sales pitch and you could end up with more coverage than you actually need.

Staying within your budget requires some careful discernment of your assets and other current insurance policies, the actual value of your car, and your car usage. If you already have good health insurance, and don’t own an expensive vehicle nor drive extensively, you may not need a high amount of coverage.

Finding A Good Insurer

When shopping around for car insurance, it’s also important to consider the kind of provider you’re signing up with. A good insurance company should provide you with reliable and reasonable coverage. They should also have a good track record for responding to insurance claims. It may be a good idea to look for customer reviews when you’re shopping around.

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Panorama takes pride in offering coverage that’s responsive to customers’ needs. You can learn more about our company and services by visiting our website.

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