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What Are the Different Types of Insurance Plans That Exist Today?

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Did you know that 46% of auto insurance customers changed their policies in 2020? It seems that Americans are getting braver about shopping around for the best insurance policy.

There are many different types of insurance plans out there, and that’s why it can get a bit confusing. We want to help simplify this for you a bit. Keep reading to learn more.

Liability Coverage

Most states consider having basic liability insurance coverage to be mandatory, so much so that if you are caught without minimum liability coverage, you could be fined or even get your license suspended. There are two aspects to liability coverage – bodily injury liability and property damage liability.

Comprehensive Coverage

If you live in an area where you have to worry about theft or other such things, then getting comprehensive coverage is a great idea. It covers you for stuff like:

  • Theft
  • Hail
  • Fire
  • Vandalism

This kind of coverage usually has a deductible, that is, you would have to pay a certain amount after which the insurance company would cover you. For example, if your deductible is $1000, then you would have to pay $1000 of a $5000 claim, and the rest of the $4000 would get covered by your insurer.

SR22 Coverage

This covers any kind of property damage and any liability which results from when a covered driver gets involved in an accident. Get cheap SR22 and cover yourself both if you own the vehicle or not.

Collision Coverage

If you get involved in a collision with another vehicle or with some property like a fence, then collision coverage will pay for repairing or replacing your car (again with a deductible). This kind of coverage is mandatory in certain states and also when you are leasing or renting a car.

Personal Injury Coverage

This one is only available in certain states and is a great way to cover your medical bills or expenses in case you have some kind of personal injury in an auto accident. Depending on your coverage, you might even be able to get compensation for any child care costs or lost income that you incur due to the accident.

It also depends on your insurer if you would be covered in case of at-fault (your fault) or not-at-fault (someone else’s fault) accidents. Make sure to read through your insurance documents carefully to figure out the exact details.

Many Types of Insurance Plans Out There

As the world becomes more dangerous, many types of insurance plans are popping up all the time to protect the citizens of the world. This is a good thing in one way, since you have more options to choose from. But it can also result in analysis paralysis due to too many choices.

If you liked the article and found it useful, don’t forget to browse through related articles on buying insurance here on our website to keep on learning. We also have articles on a wide variety of topics, so check those out.

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