4 Types of Coverage to Have on a High-Value Vehicle
If you have a high-value vehicle that costs more than a couple thousand dollars, then you might not be able to afford to replace it if it were damaged or totaled in an accident. In order to help you do so, you want to make sure you have the right type of coverage in place. Here are four types that will help you meet this need.
First, you are going to want to have collision coverage. Collision coverage is designed to provide you with protection that will cover fixing up your vehicle. With collision coverage, your insurance will pay to fix up your vehicle when you get into an accident regardless of who is at fault. If you get into an accident, and it is your fault, your vehicle will still be covered and fixed by your insurance company.
Comprehensive coverage is an entirely different type of insurance than collision coverage. Collision coverage is only for damage caused by a vehicular accident. Comprehensive coverage is designed to cover any damage to your vehicle outside of an accident.
For example, if your car is hit by hail and left with many dents, your comprehensive coverage would pay to fix your vehicle. Or if someone breaks into your vehicle and damages it, your comprehensive coverage will set in and cover you.
#3: Underinsured Motorist Coverage
Most states require drivers to carry a certain amount of insurance. However, there are still cars on the road being driven without the required amount of insurance or with a low amount of insurance that may not be enough to actually cover the damage to your vehicle. In that case, if the accident was the other driver's responsibility, but they don't have insurance to cover fixing the vehicle, you will be left high and dry. However, underinsured motorist coverage was designed to step-up and pay to fix your car if you get into an accident with a person who doesn't have any or enough insurance to pay to fix up your vehicle.
#4: Liability Insurance
Liability insurance doesn't protect your car; instead, it protects you. If you get into an accident and are at fault, your liability insurance will pay to fix the other driver's vehicle and pay their medical bills. This is just smart coverage to carry, and if you have a loan on your vehicle, you may be required to carry this type of insurance by your lender.
With a high-value car, you are going to want to carry comprehensive, collision, and underinsured motorist coverage in addition to liability insurance so that you and your vehicle are protected no matter what situation you find yourself in. To learn more, call an auto insurance agency near you.