Auto insurance is a requirement for vehicle owners in most states, including Maryland, but not all insurances are created equal. Auto insurance can keep you financially safe in several ways. Depending on what type you choose, it could include auto repair. It is important to know your options.
There are many kinds of insurance coverage, from basic to broad. Some of these will only cover minimum damage when you are in a car accident, and some will cover routine auto repair. It is valuable to know the difference between these types of insurance.
The Basics – Auto Repair Not Included
Maryland requires bodily injury liability coverage and property damage liability coverage. This type of insurance protects you in case you are found at fault for an accident and are sued by another driver. This kind of insurance will pay for things like legal fees, medical expenses and the other driver’s auto repair.
Note that we did not say it would pay for your car, if your car were damaged. If you only have the legal level of coverage for your car, then you will pay for your own auto repair out of pocket. It’s risky business to only carry liability insurance.
Uninsured and Underinsured Motorist Coverage
Maryland law also requires this kind of insurance. You will be protected by this insurance if you are in an accident caused by a car owner without insurance. In the case of an underinsured driver, if the person who caused the accident has insurance that is not as good as yours, your insurance will pay the difference.
This kind of insurance may cover your auto repair needs, if you are not the driver at fault.
Collision & Comprehensive Coverage
This is where you start getting to the good stuff. Many banks require these types of coverage. However, Maryland law does not require them. Many banks will require you purchase these before you drive off the lot.
Collision insurance protects you if you are at fault in a car accident. It will cover auto repair if you are in a single car accident or if you are the at-fault driver in an accident involving more than one car.
Comprehensive car insurance will pay for car repair needed caused by anything unrelated to a crash. For example, comprehensive would likely cover auto repair for damage caused by theft, storms, fire, vandalism and more.
MBI vs. Warranties – Auto Repair Included
Mechanical Breakdown Insurance (MBI) is something that only some companies offer, but can be valuable if you have a newer car. MBI will pay for certain kinds of auto repair, even if you are not in a crash. MBI can pay for issues related to your engine, transmission, brakes (not brake pads), exhaust system and other systems and features, depending on your policy.
When you are buying a car, the dealership may offer a warranty which is similar to MBI. They are usually more costly than MBI. New car owners may be able to find better deals with their insurance company by asking about MBI, instead of buying an extended warranty.
You can buy several other types of car insurance but these are the main pillars. Now that you know what kind of insurances there are, you can choose what is best for you.
For all of your auto repair needs, National Budget Muffler is here for you. Simply call the National Budget Muffler shop that is nearest to you or visit our General Auto Repair page for more information.
Bel Air: 410-836-1706
Havre De Grace: 410-939-8460