In some states, uninsured or underinsured motorist coverage is mandatory, so you don't have a choice whether or not to purchase it with your plan. In general, it provides an extra level of safety for you and your automobile. It can be a lengthy process to sue the other driver in an accident to cover your costs if they have no insurance or are underinsured, and it is no guarantee that the other driver will have any assets that you can acquire to help cover your costs, so uninsured/underinsured motorist coverage will allow you to quickly and surely get back on your feet after an accident.
Comprehensive coverage and collision coverage are two other types of optional auto insurance offered by car insurance companies. Comprehensive coverage covers your costs in the event that your car is damaged in some way not related to a collision. For example, if your car is stolen or damaged in a flood it will be covered by comprehensive insurance. When purchasing comprehensive car insurance coverage, you will be able to select a deductible. In the event that your car is damaged in a manner covered by your comprehensive insurance policy and you file a claim to recoup the costs associated with fixing it, you will be required to pay the deductible amount stated in your insurance policy. The insurance company will pay the remainder of the costs.
Your premium that you pay as a result of purchasing comprehensive insurance coverage is directly related to the deductible amount that you select. The higher the deductible amount, the lower premiums you pay. However, you will have to pay more out of pocket when filing a claim. Collision coverage works in much the same way. It covers damage to your car as a result of an accident, and you must choose a deductible amount when signing up for a car insurance policy. You should carefully consider your need to keep your premiums low versus your need to pay a lower out of pocket expense when filing a claim. In some cases, such as when you drive a car that isn't very valuable or isn't your main car, you may be better off not purchasing comprehensive or collision coverage at all. Conversely, if you rely on a new or expensive car as your daily driver, it would be worthwhile to purchase both comprehensive and collision insurance to prevent disruption to your daily life as a result of an accident.
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