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Auto Insurance is Vital but What Level of Cover do you Need?

In some countries such as New Zealand, it’s perfectly legal to drive a car without adequate insurance. One has to wonder what happens in the event of a crash – the bills could amount to hundreds of thousands of dollars! Luckily, here in the US, auto insurance is mandatory for all drivers; but with so many affordable policies available, it’s easier than ever to browse for Auto Insurance in Austin TX online. Working out what level of cover you require is child’s-play with our easy guide to auto insurance.

The Levels Available

There are various levels of auto insurance cover available – here are four of the most popular levels selected by drivers:

* Liability coverage

* Collision coverage

* Medical payments coverage

* Comprehensive coverage

Whatever level you decide to opt for is a personal choice based on your requirements, but here is a little more information on what each level of cover will provide you with:

Liability Coverage

If you’ve taken your eyes off the road for a second whilst backing out of a parking space, and bumped the car behind you, you might need liability cover. This level of cover provides for damages causing bodily injury and damage to others property. It’s usually best to choose a level of cover that is higher than the state minimum, to ensure you can afford to pay for damages or injury caused. This may cost you slightly more just now, but will ensure you are adequately covered in the event of a claim.

Collision Coverage

As the name suggests, collision coverage will pay for damages caused to your vehicle as the result of a collision with another vehicle, object or in the event of a rollover. It’s often difficult to work out how high your deductible will be for this type of coverage. Remember that the higher the deductible, the less you will have to pay yourself in the event of a claim, even if it may cost you slightly more at present.

Medical Payments Coverage

This level of coverage will provide for you in the event of a claim due to medical or funeral expenses. Whilst not required in most states, there are no deductibles with this type of coverage, so it is often well worth having as it will pay out in full for any expenses.

Comprehensive Coverage

Comprehensive coverage pays for loss of or damage to your vehicle that isn’t caused by a rollover or collision; such as fire, theft, vandalism or storm damage. With the recent inclement weather, comprehensive coverage may be a great option for your Auto Insurance in Austin TX.

Ultimately, whatever type of coverage you choose is your decision, but remember that opting for a higher deductible now will mean that you pay less in the event of a claim – so saving money by opting for the lowest deductible is not always the wisest decision!


State Farm is the nation’s leading insurance provider, founded in 1922 in Illinois. With its reputation as an honest, fair company, State Farm offer auto, home, business and health Insurance as well as mutual funds and banking services. For Auto Insurance Austin TX they are a reliable and affordable choice.