Car insurance is meant to keep you from having to pay for repair expenses or medical bills in case of an accident or vehicular damages. While most states in the U.S. require a minimum amount of liability coverage, insurance companies actually offer several other types of auto insurance coverage.
To decide which policy to get, make sure to research what is required by your state authorities, how much coverage you are comfortable having, and how much you can pay for auto insurance. Here’s a look at the different types of auto insurance coverage and what exactly they cover.
Bodily injury liability: Medical costs as a result of death and injuries from an accident you caused.
Property damage liability: Repair costs for any property you damaged in an accident.
Uninsured motorist bodily injury liability: Your medical costs if you have an accident with an uninsured driver.
Uninsured motorist property damage coverage: Repair costs if you meet with an accident with an uninsured driver.
Underinsured motorist coverage: Expenses in case of an accident with a driver who was minimally insured. This coverage pays after the underinsured driver’s insurance coverage limits have been met.
Collision coverage: Repair expenses as a result of traffic-related accidents, regardless of whichever party was at fault.
Comprehensive coverage: Repair costs due to events that were out of your control – this includes things like hitting an animal while driving, weather events, vandalism, and theft.
Medical payments coverage: Medical expenses for your passengers and you after an accident, regardless of which driver was at fault.
Personal injury protection insurance: Medical expenses, as well as child care, lost wages, funeral costs, and other losses due to an accident, irrespective of who was at fault.
Gap insurance: Covers the difference between what the car owner owes on the vehicle and the vehicle’s true market value.
Once you decide what coverage you need, we recommend comparing different plans that are available in the market and picking a policy that offers sufficient coverage at an affordable cost. Make sure to also assess how good the customer support offered by the insurance company is when picking your policy.