Regardless if you’re buying a new car or simply looking to get auto insurance, it’s important to know, and understand, all the types of insurances that help protect you and your vehicle in the case of an accident.
There are six types of auto car insurance that insurance companies offer, and we’re going to talk about them in detail.
Contents
1. Liability Coverage
This type of coverage is mostly mandatory in all states, meaning that drivers are legally required to purchase at least the minimum amount of this insurance. There are two main components of the liability coverage and those are:
- Body Injury Liability, which helps pay for costs if you or another person in your vehicle gets injured during a car accident.
- Property Damage Liability, which helps pay for costs you have caused to another person’s property while driving.
Source: Thompson Law
2. Uninsured and Underinsured Motorists Coverage
If you’ve been in an accident with a driver who doesn’t have any insurance, then this insurance helps pay the medical bills if you end up injured from the accident. In most states, this insurance also covers damage done to your vehicle. This insurance is mandatory in some states, and optional in others.
3. Comprehensive Coverage
This insurance focuses on covering costs related to car theft, fire, hail, or even vandalism. If your vehicle is the victim of any of the above-mentioned perils, then your insurance will cover repairs up to the vehicle’s cost. The comprehensive coverage has a deductible. This means that you have to pay an amount out of your own pocket before the insurer reimburses you. This insurance is also optional, according to eugenecyates.com, but it’s usually mandatory if you’re leasing the car.
Source: CV Mason Insurance Agency
4. Collision Coverage
Collision coverage also has a deductible element. This insurance is also optional in most states but is required if you’re leasing the car. This insurance comes in handy when involved in an accident with another vehicle, or if you come into contact with objects such as fences, walls, etc. If you have this insurance, then your insurance company will cover the costs for repair (up to the vehicle’s cash values) minus the deductible.
5. Medical Payment Coverage
This insurance is not for the driver of the vehicle, but rather for the passengers. If you have this insurance and have been involved in a car accident, then your insurance company will cover all the medical costs associated with the accident. The insurance covers for costs such as hospital visits, X-rays, surgeries, and many more elements. This insurance is mostly required in all states but is optional in some.
Source: Pinterest
6. Personal Injury Protection
Short for PIP, this insurance is not available in all states across the United States. This insurance works the same as the before-mentioned and it covers costs related to personal injuries in the case of a car accident. This insurance also covers other expenses incurred because of your injuries such as lost income, childcare expenses, etc. This insurance, as we mentioned, is available only in some states.
Other types of auto car insurances include:
- Gap Coverage
- New Car Replacement Coverage
- Towing and Labor Cost Coverage
- Ride-Sharing Coverage
- Sound System Coverage
- Classic Car Insurance
- And Rental Car Reimbursement
