Top Types Of Car Insurance

  1. Comprehensive insurance covers damage to your vehicle that occurs while it is being driven. This includes damage caused by collisions, theft, vandalism, fire, flood, hail, windstorm, and other events.
  2. Collision insurance protects against loss or damage to your car if it is involved in an accident.
  3. Liability insurance pays for injuries or damages to others resulting from an accident involving your car.
  4. Uninsured/Underinsured motorist coverage provides protection for injury or death of yourself or someone else at fault who does not have enough liability coverage.
  5. Personal Injury Protection (PIP) covers medical expenses and lost wages due to bodily injury sustained in an auto accident.
  6. Medical Payments Coverage helps pay for medical bills incurred as a result of an accident.

Types Of Car Insurance

1. Liability coverage

2. Uninsured and underinsured motorist coverage

3. Comprehensive coverage

4. Collision coverage

1. Liability coverage

Auto liability coverage is mandatory in most states. Drivers are legally required to purchase at least the minimum amount of liability coverage set by state law. Liability coverage has two components:

  • Bodily injury liability may help pay for costs related to another person’s injuries if you cause an accident.
  • Property damage liability may help pay for damage you cause to another person’s property while driving.

2. Uninsured and underinsured motorist coverage

If you’re hit by a driver who doesn’t have insurance, uninsured motorist coverage may help pay for your medical bills or, in some states, repairs to your vehicle. If you’re hit by an underinsured driver, that means they have car insurance but their liability limits aren’t enough to cover your resulting medical bills. That’s where underinsured motorist coverage may help.

Uninsured and underinsured motorist coverage is required in some states and optional in other states.

3. Comprehensive coverage

Comprehensive may help cover damage to your car from things like theft, fire, hail or vandalism. If your car is damaged by a covered peril, comprehensive coverage may help pay to repair or replace your vehicle (up to the vehicle’s actual cash value). This coverage has a deductible, which is the amount you’ll pay out of pocket before your insurer reimburses you for a covered claim.

Comprehensive is typically an optional coverage — but your lender may require it if you’re leasing or paying off your vehicle.

4. Collision coverage

If you’re involved in an accident with another vehicle, or if you hit an object such as a fence, collision coverage may help pay to repair or replace your car (up to its actual cash value and minus your deductible).

Collision coverage is typically optional. It may be required, however, by your vehicle’s leaseholder or lender.

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