You’ve just purchased a new car and want to protect both it and yourself as much as possible. Your old auto insurance policy doesn’t seem to cut it anymore, but you don’t know what kind of coverage you need. A car insurance policy can cover a lot of things if you choose the right level of coverage, but in order to do that you need to know what exactly what each facet of the policy will actually take care of. For example, different parts of your policy cover different kinds of damage.
Let’s say you lost control on an icy road and drove into the side of someone’s house. Property damage liability is the insurance that pays to fix the other person’s property. But if the front of your car is dented in a car accident that you caused, the insurance that covers fixing your car is collision insurance. Those are great options, but what if your car breaks down not because of an accident, but due to age or disrepair? Roadside assistance will help you with tows and flat tires. Mechanical breakdown insurance helps with the cost of fixing your car.
Do you need all of these coverage options? That’s entirely up to you.
Some people opt for lots of coverage and others opt to save money. Before you make a choice, take the Auto Insurance: The Basics quiz from Health IQ. You’ll learn about the different coverage levels, so you can make an informed decision while you’re shopping for auto insurance.