Understanding Different Types of Auto Insurance Coverage

As a responsible motorist, you must abide by the rules of the road and other legal requirements. In most cases, this includes maintaining minimum levels of auto insurance, which plays an integral role in financially protecting you and your vehicle from various accidents and other incidents that might otherwise include significant financial consequences.

Still, even while satisfying your legal obligations, you may need to consider additional coverage to ensure comprehensive financial security. After all, even the most experienced and responsible drivers may not be able to avoid every accident or protect their vehicles at all times, meaning that a versatile insurance policy may be necessary to avoid expensive out-of-pocket costs and losses.

What Types of Auto Coverage Are Available?

Although your exact auto insurance needs may be unique and you can generally customize parts of your coverage according to your preferences and budget, the following features may be advisable to include in your policy:

• Bodily injury liability coverage—Legally required in Arkansas, this coverage can protect you from the financial ramifications of being at fault for an accident in which another party, such as a fellow motorist or pedestrian, is injured.
• Property damage liability coverage—This component of auto insurance is also required by law for Arkansas vehicle owners and can help ensure that other parties are compensated for their losses if you damage their property.
• Collision coverage—This coverage can help pay for your own losses if your vehicle is damaged in a collision with another vehicle or a stationary object, such as a building, signpost or guardrail.
• Comprehensive coverage—If you suffer vehicle-related losses due to a noncollision incident, such as fires, theft, vandalism, striking an animal or falling objects (e.g., tree limbs), this coverage can provide financial assistance.
• Uninsured/underinsured motorist coverage—This type of coverage can provide you with financial relief if another party is at fault for an accident but does not have sufficient insurance to pay for your losses.
• Personal injury protection—This auto insurance feature, also known as PIP, may render financial aid to you and your passengers following accidents on the road, regardless of who was at fault. This may include funds to cover medical bills and lost income if your ability to work was affected.

How to Get the Right Auto Insurance

The dedicated team at Variety Insurance Agency in Springdale, AR is ready to help you understand and address your auto coverage needs. We will work with you to thoroughly analyze your unique circumstances, identify potential options and help you select a suitable policy with ideal rates. Visit our website or call 479-365-2233 to learn more or to get a personalized auto insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.