One of the best things you can do to protect yourself in a car accident is to get car insurance. Depending on what type of coverage you get, you can get the costs of fixing your car, the other person’s car, and even the medical bills paid for. A car accident is an unexpected and costly event that can leave you in a very bad financial position.

There are various kinds of car insurance plans that you can opt for. However, the most basic one among them is known as liability insurance, which just covers the damage done to the other car?s driver. If the accident is caused because of your mistake and you damage someone?s car or hurt the person, then your insurance will provide coverage for a certain amount of the expenses. Such plans usually are stated with a number sequence in three parts. First number tells to what extent of coverage a person can get. Second number tells to how much of bodily coverage will be totally covered, and the third number tells what part of the coverage can go for the damaged car. You must however remember that all this coverage is for the car you hit and not for yourself.

In case of an accident, collision insurance covers the damage done to you or your car. The main thing you must to remember in regards to collision insurance is that the damage done to you and your car is already covered. Given that liability insurance is essential in each state excluding Wisconsin, South Carolina, Tennessee, New Hampshire, and Virginia, you needn’t worry about it much. Of course, this is only until you feel that you are not a careful driver. If you can spend a little additional money, collision insurance could be the right one for you, if your driver is young.

If you’re worried about something happening to your car besides accidents you can get comprehensive car insurance. This covers anything that might damage your car including vandalism, bad weather, or theft. You decide how much you’re comprehensive insurance to be worth and your insurance covers up to that much. Most insurance companies recommend about $100,000 dollars worth of comprehensive insurance on your car if you are going to get it.

The deductible is amount that you give to the insurers when you face some kind of accident. Even though your insurance plan provides coverage for most of the expenses, you generally have to pay them some kind of deductibles. In case you offer a higher deductible for e.g. $1,000 dollars, then the monthly payments you make may be reduced. However if you face an accident, then you may have to pay more deductibles.

When figuring out your insurance and deductible be sure to take in mind the value of your car. If your car is not worth more than $1,000 dollars, collision and comprehensive insurance are completely inappropriate for your needs. They are however, fairly important if your car is worth a lot of money. If you are spending more on your insurance than the car itself, you can be sure that the insurance plan is probably not right for you. Make sure you talk to an insurance agent before deciding what type of insurance you want to buy.