When it comes to auto insurance, it seems like everyone is always trying to find ways to cut down their coverage and their rates. However, cutting your coverage is not always a sound decision. Here are a few types of coverage that some people may consider "extras" that are actually worth paying for. 

Uninsured Motorist Coverage

You should not skimp out on uninsured motorist coverage. Uninsured motorist coverage protects you and your loved one from any damage that may be caused by a driver who does not have insurance or who is underinsured. It can also protect you from any damage caused by a hit and run driver. 

This type of coverage is vital to have. If you are in a serious accident with someone who does not have insurance and they were responsible for the accident, you could find yourself out thousands of dollars, as your insurance will not cover the costs without uninsured motorist coverage.

Uninsured motorist coverage is especially important to have because it can cover you even when you are not in your vehicle. If you or someone in your family is skateboarding, riding a bike or even walking, and is hit by someone without insurance, your uninsured motorist coverage would kick in and cover you medical bills. 

Since there is no guarantee that every driver has insurance or the right amount of it, this is a great way to protect yourself against the unknown. 

Collision & Comprehensive Insurance

If you have a loan on your vehicle, you need to make sure that you have collision and comprehensive insurance. Your loan provider may even require you to have this type of coverage. If anything happens to your vehicle while you still have a loan, this is the only way to ensure that you will be given enough money by your insurance provider to pay off the cost of the loan in the event that your vehicle is totaled. 

Umbrella Policy

Finally, it makes sense to carry an umbrella policy, which is also called an excess policy. This type of policy will kick in if you exceed your liability coverage limit for you auto insurance.

If you cause an accident, and you are sued, and the other party is awarded an amount that exceeds your liability coverage, an umbrella policy would pay the rest of their settlement. You would not have to tap into and sell your other assets to satisfy your settlement.

This type of policy can also kick in if you are seriously injured while driving your vehicle. If your injuries exceed your medical coverage limit, your umbrella policy would kick in all the up to its maximum limit to help you out. 

Talk to your insurance agent today and make sure that you have uninsured motorist coverage, collision and comprehensive coverage, and an adequate umbrella policy. Although it makes sense to save money on your insurance coverage, you also need to make sure that you have the coverage you need as well for any situation that arises. 

To learn more, contact an insurance agency like Cornerstone Insurance Group.