With regards to auto insurance, options are abundant. As a matter of fact there are such a large number of options that determining which type of coverage you need can be challenging. If the car you own is older and is not very valuable the decision is a lot easier. If you own an older vehicle that’s not very valuable the best decision is to just go with whatever the minimum allowable coverage is in your state. For those of us that require additional coverage there are a lot of choices so this article is going to explain a bit more about some of the various auto insurance options.

Each state has their own requirements about the amount of coverage and which types of coverage motorists must have in order to operate a motor vehicle legally. Some states require a minimum amount of liability insurance that will pay for medical costs and property damage to other parties if you are the one that causes a car accident. Other states that are known as “no-fault” states will not require liability coverage but they do require Personal Injury Protection or PIP coverage. This type of coverage will pay for your medical bills or the medical expenses of any passengers in your car if you are involved in an accident regardless of who is at fault. Many states also require underinsured / uninsured motorist coverage. What this type of coverage does is it helps pay for damages you incur when you are involved in an accident in which someone else is at fault but they either do not have insurance or the limits of their insurance are not sufficient to cover the damages they have caused.

Once you’ve met the minimum requirements for the state you live in there are other auto insurance options for you to consider. If you drive a new or very valuable vehicle just carrying the minimum allowable insurance required by law is usually not the best idea and it would be good to carry additional coverage. The smartest course of action would be to obtain sufficient coverage to pay for not only your medical expenses but also enough to repair or replace your car even if you are at fault in an auto accident.

Collision coverage is an option for many people. If you have enough collision coverage your insurance provider will pay to repair or replace your car even if you are the one that causes a collision. Another option you may want to think about is comprehensive coverage. This type of coverage would pay for a number of things that might happen other than damage from an auto accident. Things such as theft, vandalism, and damage from fire or natural disasters would be covered with a comprehensive plan.

For someone that drives a new or valuable vehicle, collision and comprehensive plans are a couple of options that should definitely be considered. Many insurance agencies also offer quite a few other types of options for things like roadside assistance, towing and labor costs, rental reimbursement coverage if you have to rent a vehicle while yours is being fixed etc. Your insurance agent would be able to talk about additional coverage options with you if you think you might need more coverage than your state’s minimum requirements. A general rule of thumb is that the more your car is worth the more insurance you should have.