Types of Auto Insurance Coverage
Author: weissheiss
There are many types of auto insurance coverage that may or may not be included on your current policy. It is always a good idea to be informed when making a purchase and auto insurance is no exception. One way to be informed is by being familiar with the different types of auto insurance coverage that are available to you and by knowing which would be necessary for you to have and which would just be a waste of money.
Liability Coverage
There are two main types of liability insurance- property damage and bodily injury. Property damage liability coverage will cover damages affecting the other driver’s vehicle in an accident when you are at fault. This will not pay for damages to your vehicle.
Bodily injury liability coverage covers the medical expenses resulting of the other driver and their passengers in an accident where you are at fault.
Both of these types of coverage are required in most states. However, the amount of coverage differs from state to state, so be sure to find out how much liability coverage is required in your state.
Collision Coverage
Collision coverage covers damages affecting your car when you are in an accident. This will not be required by state law. However, it may be required by your lender if your car is being financed.
Comprehensive Coverage
Comprehensive coverage will pay for damages up to a certain dollar amount, for things unrelated to an accident such as fire, vandalism, theft, etc. Like collision coverage, this is not required by state laws, but this type of auto insurance may be required by your lender if your car is still being paid off.
Personal Injury Protection (PIP)
PIP covers expenses arising from injuries to you (the driver), your passengers, and pedestrians when in an accident.
Uninsured/Underinsured Motorists Coverage
This type of insurance coverage is designed for covering your expenses when you are in an accident and the driver who is at fault does not have the proper insurance.
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