Collision Coverage

• Types of auto insurance coverage include collision coverage. This assists in covering damage to your vehicle if you hit an inanimate object such as a tree, telephone pole, lamp post or guardrail. Perhaps a driver is too distracted by a cell phone or in the worst case scenario, has fallen asleep at the wheel. The point is that these accidents are still quite possible even though other cars are not involved.
• The good news is that if a vehicle is totaled, meaning that it would cost more to fix it than to replace it, you will be paid the value of your car. Automobiles that are older could not necessarily need collision coverage depending on the total value. However, those insured with newer or more expensive cars will have better assurance that a car will be returned to its original state before the accident.

Liability Coverage

• There is also liability coverage which is offered for private property and physical injury should a driver be legally accountable for damages. In some cases, medical payments coverage will be helpful in paying expensive costs of medical attention in a covered accident for anyone involved. The two types of liability coverage are those for bodily injury and those for personal property.
• All drivers nationwide must have a minimum amount of liability insurance in the majority of cases. Those that can afford more than the minimum of liability coverage should do so as this additional coverage could prove beneficial in the future. Better to be more fully insured should an unforeseen accident occur no matter how careful you might be.
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Uninsured or Underinsured Motorist Coverage

• Another form of insurance is uninsured or underinsured motorist coverage. This helps to cover you if another motorist is at fault and lacks proper insurance. For example, many states have minimum liability insurance rates that are fairly low and this could apply to many drivers. The reality is that about one in eight drivers on the road is uninsured.  
• If the at-fault driver does not have coverage at all, then the other driver will not receive payment as needed. Those with not enough coverage will not be able to cover all accident-related costs. In such cases, this is where you would receive financial assistance due to at-fault drivers that are uninsured or underinsured.

Comprehensive Coverage

• On the other hand, comprehensive coverage meets the needs of special circumstances. This includes weather and fire damage, as well as criminal activity such as vandalism. Comprehensive coverage is also a good option if you can afford it, as it handles special circumstances such as these.
• Having anti-theft devices on a car can make this coverage a bit more affordable. However, if your car can be easily replaced, then it is not essential to have. Sometimes this type of coverage is referred to as fire and theft, as it would cover both of these circumstances should they occur.