Types of Car Insurance Coverage You Should Get

As a responsible driver, you should be familiar with all the types of car insurance coverage’s. We highlight the types of car insurance coverage you should get.

If you’re shopping for auto insurance or buying a new car, you should be aware of the common coverage types available to drivers with a car insurance policy.

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Different car insurance coverage types can protect your passengers, your vehicles, and yourself if you get into an accident. We will be highlighting some of the most common types of car insurance coverage you should get, which include the following:

1. Uninsured and underinsured motorist coverage
2. Personal injury protection
3. Medical payments coverage
4. Comprehensive coverage
5. Collision coverage
6. Auto liability coverage

Most of these car insurance coverages will be mandatory, while others will be optional depending on your area. You need to understand your state’s requirements and what each coverage offers you to help find the car insurance coverages you should get.

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1. Auto Liability Coverage

This is mandatory coverage in most states. Drivers are required legally to buy a minimum amount of liability coverage, which the state law will set. There are two parts of auto liability coverage:

1. Property damage liability – is for paying costs of damages sustained by another individual’s property when you were driving.

2. Bodily injury liability– is for paying the medical costs of injuries sustained by other individuals due to the accident.

2. Uninsured and Underinsured Motorist Coverage

When you get into an accident with a driver who doesn’t have insurance, this coverage will help pay the costs of your medical bills and even vehicle repairs in some states. If you’re in an accident with an underinsured driver, it means they have insurance, but the liability limits they have won’t cover the costs of your medical bills.

It is exactly where this coverage helps. Some states have made uninsured and underinsured motorist coverage mandatory, while it is optional in others.

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3.Comprehensive Coverage

This coverage helps cover the cost of damages to your vehicle from vandalism, hail, fire, or theft. Comprehensive coverage will cover the cost of repairs or replacing your vehicle, up to the cash value of your car. There is a deductible with this coverage, which will be the money you’re paying from your pocket before your insurance company reimburses you for the claim.

This is optional coverage, but you may be required to purchase it if you are paying off or leasing your car.

4.Collision Coverage

This coverage will help you when you get into an accident with another or hit an object like a fence, as it will cover the cost of repairs or replacing your car, minus the deductible and the cash value of the car.
Collision coverage is optional but may be required by the lender or leaseholder of your car.

5. Medical Payments Coverage

This coverage will pay for hospitalization costs and injuries if your family members, passengers, or you get into an accident while driving. The coverage includes X-rays, surgeries, hospital visits, and more.

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6.Personal Injury Protection

This coverage is only available in select states and covers medical expenses for injuries resulting from an accident. Personal injury protection coverage also covers costs incurred due to your injuries, like lost income or childcare expenses.

This coverage is mandatory in states where it is available and optional in others.

Medical coverage is mandatory in most states and optional in others.

 

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