Search

: Analyze Your Circumstances

Assess Your Insurance Coverage

No matter what type of transportation you use, you need to understand what your insurance covers and when it kicks in. Use the Auto Insurance Worksheet to assess your coverage in the following categories:

Types of Auto Insurance

  • What Does it Cover? Injuries you cause to another person
  • Is It Required by Most States? Yes
  • What Does it Cover? Damage you cause to another person’s property
  • Is It Required by Most States? Yes
  • What Does it Cover? Your own and your passengers’ injuries as well as lost wages and cost to fill in for the injured party’s essential functions, such as child care
  • Is It Required by Most States? No
  • What Does it Cover? Damage to your vehicle from traffic accidents and collisions with trees, stop signs, etc.
  • Is It Required by Most States? No - Even if collision and comprehensive coverage are not required by your state, these coverages might be required by your auto loan lender. These coverages often are sold separately with a deductible. The higher your deductible, the lower your monthly premium. However, a high deductible also means you will pay more out of your own pocket before the coverage kicks in.  
  • What Does it Cover? Damage to your vehicle from weather, natural disasters, fire, vandalism, contact with animals such as deer or birds; can cover things like hail damage and cracked windshields
  • Is It Required by Most States? No - Even if collision and comprehensive coverage are not required by your state, these coverages might be required by your auto loan lender. These coverages often are sold separately with a deductible. The higher your deductible, the lower your monthly premium. However, a high deductible also means you will pay more out of your own pocket before the coverage kicks in.  
  • What Does it Cover? Hit-and-run incidents and accidents caused by drivers with no insurance or not enough insurance to cover your damages; also can cover you if you are hit as a pedestrian
  • Is It Required by Most States? Depends on your state
  • What Does it Cover? The cost of a rental car when your car needs repairs
  • Is It Required by Most States? No
Course Home