Car Insurance Coverage

Car insurance coverage is a topic that calls for long and heated discussions. What are the different types of car insurance coverage? Which car insurance coverage is mandatory? Why is it necessary to take certain optional car insurance coverage? These are the major questions that come up when a person thinks about purchasing car insurance.

The different types of car insurance coverage are:

1. Comprehensive coverage
   This coverage pays for damages to your car from natural disasters, fire, break-ins, vandalism etc. You can drop this coverage if your car is not an expensive one -- we advice it for car insurance for sports cars, though.

2. Medical coverage
   This coverage pays for medical expenses you and your family incurred due to an accident. You can drop this coverage if you have a good health insurance.

3. Collision coverage
   This coverage pays for repairs or replacement of your car from collision regardless of who was at fault. If you have an expensive car or a new car, it is advisable to include this coverage in your policy.

4. Liability coverage
   This coverage pays for claims made against you for physical injury and property damage. This is the most important coverage and is usually mandatory.

5. Breakdown coverage
   This coverage protects you in an event of a car breakdown. It will provide for on the spot repairs, courtesy car, towing of car to a garage etc.

6. Uninsured or under insured coverage
   In an accident, if the defaulter is an uninsured or under insured, then this coverage helps the insured to meet the medical expenses for bodily injuries and damages to property.

Insurance policies of different companies combine various types of coverage in different manner. Choose an insurance policy according to the laws of your state and your needs and budget.