Even the most savvy car owner (and Mercedes E-Class owners are often among the savviest) can often have trouble distinguishing between the different types of insurance coverage that make up their overall insurance policy. It doesn’t matter whether you own a E350, E550, E55, or a E63, the three main types of insurance coverage remain the same. And since the type and amount of coverage you have can affect your rates drastically, it pays to take some time to get a better grasp on it. If you’re someone who can’t tell the difference between property damage liability and collision coverage, check out our brief descriptions of the three main types of auto insurance coverage:
- Liability Insurance: Liability insurance is coverage for damages to other driver’s cars (and any injuries they sustain) that you are liable for when you are at fault in an accident. Liability insurance is made up of two main types of coverage: Bodily Injury Liability (which covers any medical expenses the other driver or passengers require) and Property Damage Liability (which covers the other drivers personal property – usually meaning their vehicle and any damaged possessions within). Most states require all drivers to carry liability insurance, although the amounts can vary by state. On your policy, liability insurance is usually seen as two numbers (i.e. 20/100) - the first number is the amount the company will pay (in thousands) per person and the second is per accident. If the amount of damages exceeds those numbers, you will be forced to cover the rest.
- Physical Damage Coverage: Where liability insurance covers expenses related to the other drivers car, Physical Damage insurance covers your vehicle in the event of an accident. Again, there are two main sub-categories of physical damage coverage: Collision Coverage (which covers damages to your car as a result of a collision or other type of car accident) and Comprehensive Coverage (which covers you against damage to your car from something other than a collision – such as your car being stolen, a large branch falling on it, or a hurricane or other weather related cause. While states don’t usually require you to carry physical damage coverage, that doesn’t mean you shouldn’t carry it. Since your E-Class Mercedes is a huge investment, you’re going to want to make sure that you have enough coverage to fix or replace your vehicle if anything unforeseen should happen.
- Uninsured Motorist Coverage: While it may seem crazy, there are still some drivers who refuse to purchase auto insurance. Besides being illegal, this can present problems for responsible drivers – even if they have insurance. If you are in an accident with an uninsured driver, you may not be able to collect the full amount of your damages. If you have uninsured motorist coverage, however, your insurance company will cover the damages that the other motorist cannot. Although you may think it unlikely that you’ll get in an accident with an uninsured driver, you never know what’s going to happen out there on the road.
Whether you’ve just purchased a brand new E-Class Mercedes and are itching to take it out for a spin or just trying to provide coverage for a used model, car insurance is a requirement. And while there is no requirement that you get the best deal on the right amount of insurance coverage for your needs, you can do your best to make sure you have all the information necessary to make an informed decision when buying your policy.