If you are not aware yet that there are various kinds of auto insurance, you may be in for a surprise when you begin researching and shopping for your coverage.
Here are some of the more popular kinds of auto insurance and just what they will cover for you:
Collision Auto Insurance
This policy is specifically designed to cover damage in an accident involving two or more vehicles. It will help pay for necessary repairs or perhaps even replace the vehicle that is covered up to its actual cash value less the deductible. An optional coverage, loan financers or leasing companies may require collision insurance.
Comprehensive Auto Insurance
A comprehensive insurance policy offers more coverage than many other policies. It most likely will not only reimburse you for expenses incurred due to a collision with another auto but might also cover expenses due to the weather like hail damage, vandalism, theft, fire, or even involving animals on the road.
This kind of policy assists in repairing damage or in replacing your car up to its actual cash value at the moment of the incident. There will usually be a deductible attached which will be the amount that you must pay out of pocket. While generally an optional kind of coverage, in some circumstances it may be mandatory.
Liability Auto Insurance
Liability insurance coverage is mandatory in most U.S. states if you want to drive an automobile. This will cover damages to property and for injury if you are deemed legally responsible in the event of an accident.
Depending on your coverage, your insurance provider may not cover total costs, but this policy certainly goes a long way in managing expenses if you are involved in an accident.
Personal Injury Protection Auto Insurance
Personal injury protection covers specific medical costs and eventual loss of income due to a covered auto accident. These policies generally have specified limits which might cover as much as 80% of all medical costs and eventual other expenses that are a direct result of the covered accident.
PIP is not available in all U.S. states, but for those that purchase it, it can help with expenses that result from the accident like extra childcare and more.
Uninsured Motorist Auto Insurance
The uninsured motorist coverage is meant to protect both you and your vehicle if you are involved in an accident where the other driver is uninsured or if you are involved in a hit-and-run episode. You will find this kind of coverage to be often paired with underinsured motorist insurance coverage. This coverage may be mandatory in some states and optional in others.
Other Types of Auto Insurance Coverage Available
“Classic Car” Auto Insurance
This type of insurance policy is specifically designed for the owners of vintage or “classic” car owners.
Ride-sharing Insurance Coverage
If you drive for Uber or Lyft, regular car insurance does not cover cars used for business purposes. If you do not have coverage and use your vehicle for personal and business reasons, this added coverage may be in your best interests.
New Car Replacement Insurance
If you have a car that is less than 2 years old and is totaled, this coverage will replace the car instead of just reimbursing the depreciated value.
Getting Great Insurance Coverage
There is no standard insurance coverage that is right for everyone. How often you drive, where you drive, your chosen vehicle and your personal history will all determine how much you pay. It’s important to get the best coverage for your individual needs.
