Although there are many types of auto insurance coverage, you might be wondering which is the most important? What we do know is that some coverages are required by law and others are available depending on your personal circumstances. Here are some things to consider when determining which coverages are mandatory and which ones you can have as an option.
Liability coverage
The most important coverage should be the minimum liability and property damage coverage. More than anything else, you need to maintain auto insurance to stay in good standing with the law. You risk losing your driver's license and receiving fines if you drive without insurance. If you have an accident without liability insurance, you could face huge penalties, including bills for the damage you caused.
Liability and property damage coverage is intended to protect other drivers on the road from damage you cause. In your car insurance, third party liability is probably defined as: bodily injury. Material damage covers the property of others. For example, if you hit someone else's car or damage municipal property like a guardrail or traffic sign, your auto insurance will cover the damage up to the limit stated in your policy.
Other important warranties
If you also want to protect your own property. You will need to purchase property damage insurance so that you are protected against large expenses related to repairs to your car if you damage it or if an outside factor damages it. Here are some other possible guarantees:
All risk insurance. It covers damage caused by any factor other than a collision. It includes, but is not limited to, damage caused by deer, rodents, glass, fire, theft, vandalism and storms. A deductible generally applies.
Collision Warranty. It compensates you when you damage your vehicle following a collision, whether it is with another vehicle, a tree or a mailbox, it doesn't matter.
If you want to find out about car insurance and what it can offer you, go to the MAIF website. You can then make an online quote to assess your budget but also take out insurance directly online.
Car insurance extras
Car insurance provides many types of optional coverage that can be important. Additional coverages include Excess Insurance, Rental Insurance, Roadside Assistance, Custom Equipment, OEM Endorsement, Minor Violation Waiver and Accident Waiver. While it's very possible that you could cover these expenses out of pocket rather than purchasing the coverage, some of these optional coverages can provide significant financial protection.
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It is possible to reduce the cost of your insurance by reducing the coverage, but be prepared to face the additional expenses in the event of an accident. Do not hesitate to discuss this with your insurer.
