Auto insurance is an important type of insurance that provides coverage for damages to your vehicle, as well as for injuries or property damage that you may cause to others while driving.
In this article, we will discuss the various forms of auto insurance coverage that are available, as well as the ways in which each type may protect you and your vehicle.
Types of Auto Insurance Coverage
If you are in the searching for a new car or are in the process of looking for auto insurance, it is very probable that you will need to have a working knowledge of the several typical types of coverage that can be found on an auto insurance policy.
In the event that you are involved in a car accident, you and your passengers, as well as your car, can benefit from the numerous forms of coverage that are offered by car insurance.
Some of these coverages must be purchased regardless of where you live, while others can be purchased at your discretion. If you are aware of what is necessary in your state and what each type of coverage helps cover, you will be better equipped to choose the coverage that is appropriate for your circumstances.
Learn about what each of these coverages are and what they would cover, below:
1. Liability coverage
Liability coverage is a type of auto insurance that provides protection if you are found to be at fault in an accident and are sued by the other driver or their insurance company. It typically includes coverage for bodily injury and property damage.
There are two main types of liability coverage: bodily injury liability and property damage liability. Bodily injury liability covers the medical expenses, lost wages, and other costs of the other driver and passengers if you are at fault in an accident and they are injured.
Property damage liability covers the costs of repairing or replacing the other driver’s vehicle if you are at fault in an accident and damage their vehicle.
Liability coverage is typically required by law in most states, and the minimum amounts of coverage that you must carry may vary by state. It is important to make sure that you have sufficient liability coverage to protect yourself in case of an accident.
2. Collision coverage
Collision coverage is a type of auto insurance that pays for damages to your vehicle if you are involved in an accident, regardless of who is at fault.
This type of coverage can be especially valuable if you have a newer or more expensive vehicle that would be costly to repair or replace.
Collision coverage typically includes a deductible, which is the amount that you must pay out of pocket before the insurance company will cover the remaining costs of repairing or replacing your vehicle.
The higher the deductible, the lower your premium (the amount you pay for the insurance) will be. However, you should carefully consider the amount of the deductible, as a higher deductible may mean that you have to pay more out of pocket if you are involved in an accident.
3. Comprehensive coverage
Comprehensive coverage is a type of auto insurance that provides protection for damages to your vehicle that are caused by non-collision events, such as theft, vandalism, or natural disasters.
This type of coverage can be valuable if you live in an area that is prone to these types of events, or if you have a vehicle that is at high risk of theft or vandalism.
Like collision coverage, comprehensive coverage typically includes a deductible. The amount of the deductible will vary depending on the policy and the insurer, and it is important to carefully consider this amount when choosing a policy.
4. Uninsured/underinsured motorist coverage
Uninsured/underinsured motorist coverage is a type of auto insurance that provides protection if you are involved in an accident with a driver who does not have insurance or does not have enough insurance to cover the damages.
This type of coverage can be valuable if you are involved in an accident with a driver who is uninsured or who does not have sufficient coverage to pay for the damages.
Uninsured/underinsured motorist coverage typically includes two types of coverage: uninsured motorist bodily injury coverage and uninsured motorist property damage coverage.
The first type covers your medical expenses and other costs if you are injured in an accident with an uninsured driver, while the second type covers the damages to your vehicle.
5. Medical payments coverage
Medical payments coverage is a type of auto insurance that provides compensation for medical expenses, including hospital bills and rehabilitation costs, if you or your passengers are injured in an accident.
This type of coverage can be valuable if you or your passengers are injured in an accident, even if you are not at fault.
Medical payments coverage typically includes coverage for ambulance fees, hospital stays, surgery,
Other Types Of Auto Insurance Coverage
There are many other types of auto insurance coverage that may be available, depending on the policy and the insurer. Some other common types of coverage include:
- Rental car coverage: This type of coverage provides a rental car if your vehicle is damaged and cannot be driven.
- Roadside assistance: This type of coverage provides assistance if your vehicle breaks down or you need help changing a flat tire, running out of gas, or other roadside emergencies.
- Personal injury protection (PIP): This type of coverage provides compensation for medical expenses, lost wages, and other costs if you or your passengers are injured in an accident, regardless of who is at fault.
- GAP coverage: This type of coverage covers the difference between the value of your vehicle and the amount that you owe on your auto loan if your vehicle is totaled in an accident.
- Custom parts and equipment coverage: This type of coverage provides protection for custom parts and equipment that are added to your vehicle, such as aftermarket audio systems or custom wheels.
The specific types of coverage that are available and included in your policy will vary depending on the insurer and the policy that you choose. It is important to carefully review your policy and consult with an insurance agent or broker to make sure that you have the coverage that you need to protect yourself and your vehicle.
Auto insurance is an important type of insurance that not only covers injuries and property damage that you may cause to other people while driving but also covers damages to your own vehicle in the event that it is damaged in an accident.
Auto insurance coverage comes in a wide variety of forms, including liability coverage, collision coverage, comprehensive coverage, uninsured/underinsured motorist coverage, and medical payments coverage, to name a few.
It is important to carefully review your policy and consult with an insurance agent or broker to ensure that you have the protection that you require. The type of coverage that is most appropriate for you will be determined by your unique requirements and the circumstances in which you find yourself.