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Figuring Out What Kind of Car Insurance Coverage You Need

Choosing the right kind and amount of auto insurance in Newark, DE, for your needs includes factors like your vehicle’s value, your driving habits and history, and the amount you could reasonably afford to pay out of your pocket after an accident.

Types of Auto Insurance Coverage

There are different types of auto insurance coverage options. Several basic components make up what is typically referred to as “full coverage” auto insurance.  Here are some coverage products and add-ons that your insurer might offer.

Liability Insurance – This covers the costs if you are liable for an accident, damaged property, or if you injure someone with your vehicle. Liability insurance will cover the legal bills and settlement costs up to your policy limits after an at-fault accident. It is required in most states.

Personal Injury Protection (PIP) – Often referred to as PIP, this auto insurance covers medical and related expenses up to your coverage limits if you or your passengers are injured in a car accident, regardless of who was at fault.

Uninsured Motorist/Underinsured Motorist Insurance (UM/UIM) – This insurance covers you if you’re in an accident caused by an uninsured driver, or a driver whose insurance can’t pay for the full extent of the damage caused.

Collision Insurance – This auto insurance covers damage to your own vehicle after an accident, no matter who was at fault. Along with comprehensive coverage, collision coverage often makes up what is commonly referred to as “full coverage” car insurance.

Comprehensive insurance – Comprehensive coverage covers the damage to your car when it’s not being driven, including damage from extreme weather, falling objects, animals, flood, fire, vandalism, and theft. It goes hand-in-hand with collision insurance.