What are the Major Types of Car Insurance?

What I want to break down today are the three main types of car insurance for you. So those three major types of car insurance are the protection of others. If you’re involved in an accident and cause it, how are you protecting it and making the other party whole while protecting your assets?

The second one is going to be the protection of yourself. You know, if you get hit by somebody who is uninsured or under-insured, how do you make sure that you protect your wellbeing?

The third one is going to be the protection of your vehicle. So we’ll go ahead and break those back down from the beginning.

1st component - Protection of others

The first one is going to be the protection of others. This breaks out into two parts. One will be the bodily injury liability, and the other one will be property damage. These are the three numbers that you hear about on your insurance policy that it’s going to at the state minimums are $25,000 per person. $50,000 per accident and $15,000 of property damage. And that’s going to be your liability to others. Now that’s grossly inadequate. So I recommend all my clients. We look at $100,000 at a minimum per person, 300,000 for the accident, and 100,000 property damage. In some cases, you know, looking to increase that up to two 5,500. 100 is a great option. Uninsured motorist is that every time you get behind the wheel, it’s one of the most dangerous things you do daily, statistically speaking. What we want to do is make sure that you are well protected. There are many drivers out there, probably 15 to a hundred percent of drivers that don’t have insurance.

2nd component - Protection for yourself

So we need to protect yourself with an uninsured motorist, or underinsured motorist say somebody’s got the state minimum requirements. They hit you. They cause a severe amount of injury. You can match your own bodily injury levels with an uninsured motorist, which I recommend for all of my clients. It’s a safety blanket. That’s going to help you. If you’re significantly injured in an accident, you have to miss a significant amount of time for work pain and suffering. All of that comes through uninsured motorists. There’s also a separate coverage called medical payments. Medical payments are just going to cover that first dollar medical issues that you may have and in a smaller accident where you may need to see a chiropractor. You may need to go to the ER but don’t want to play with your own. Personal medical health insurance for you’ve got medical coverage for them.

3rd component - Protection of your Vehicle

The third thing, which is way, way, way down the pole, in my opinion. It’s the coverage of your vehicle. This is where we think about comprehensive and collision.

We’re looking at the deductibles of that. That’s going to replace your vehicle in the event of an accident. The other two protection of others and protection of yourself. Far more, significantly important. That’s why I want to have my clients invest their insurance dollars versus the vehicle’s coverage. But we can go ahead and group all three major types of car insurance for you.

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Tagged what is car insurance

The 3 Major Types of Car Insurance

1st component - Protection of others

2nd component - Protection for yourself

3rd component - Protection of your Vehicle

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