Car insurance comes in different types of coverage, and it’s important to understand them when you’re comparing quotes and buying a policy.
One common type is liability car insurance, which covers injuries or damage you cause to others while driving. This includes damage to another person’s car. In fact, most states require you to have at least some liability coverage.
Another type is collision car insurance, which covers damage to your own car caused by accidents with other vehicles or stationary objects. While it’s not required by state law, lenders often mandate collision coverage if you financed your vehicle.
Comprehensive car insurance is a type of coverage that protects against damage to your car from non-collision incidents. This includes damage from things like animals, falling objects, fire, weather, theft, and vandalism. It also covers glass and windshield damage. While comprehensive coverage is typically optional, it may be necessary if you have a car loan or lease.
There are also additional types of coverage you can consider. Uninsured motorist coverage provides protection if you’re in an accident with someone who doesn’t have liability insurance or in a hit-and-run incident. Underinsured motorist coverage comes into play when you’re in an accident with someone who doesn’t have sufficient liability coverage to cover your repair costs or medical bills.
Personal injury protection (PIP), also known as no-fault insurance, covers your medical expenses and related costs if you’re injured in a crash, regardless of who caused it. PIP is required in some states and optional in others.
Understanding the different types of car insurance coverage can help you make informed decisions when selecting a policy that suits your needs and meets any legal or lender requirements.
