Car insurance is full of different types of coverage. The first example that may come to mind may be liability coverage. The main reason why you might have already heard about it is because it is a legal requirement in most States in America. So, without it, you mustn’t drive a car.
Liability coverage is used to pay for the damages caused to property or the injuries to another person. Of course, you will get coverage when you are at fault. What is more, it will be a relief to be able to cover these expenses if you are legally responsible.
Collision and Comprehensive car insurance
Collision coverage is perfect if what you want to insure is any damage to your own vehicle in an accident. Needless to say, it will be necessary to help fix or even replace a vehicle that is fully covered.
Comprehensive car insurance is already giving some information about its purpose. Do you feel more confident with an additional level of coverage? The comprehensive coverage is what you need.
Imagine, for example, you have to cover the expenses of an incident that is not actually an accident. For instance, it could cover the cost of damages caused by animals, a falling object, explosions, floods, storms, vandalism, or even an earthquake. So things that are not collisions.
Other car insurance types:
Personal Injury Protection or Uninsured Motorist coverage
This is the sort of car insurance you will need if you want to have medical expenses for passengers and for yourself covered. Basically, it is a medical payments coverage.
In this case, it covers the cost of medical expenses without taking into account who is legally responsible for the accident. Bodily injury liability only covers the injuries you have caused someone.
Uninsured motorist coverage is useful when the other person hit your vehicle and has no car insurance. Therefore, it will cover the expenses of this accident. Bear in mind that there is an important number of uninsured drivers in the USA, so watch out! Other types are:
- Underinsured motorist coverage
- gap insurance
- Medical payments coverage
- Towing and labor insurance
- rental reimbursement insurance