- 1 Introduction
- 2 Liability insurance.
- 3 Medical payments or Personal Injury Protection (PIP) insurance.
- 4 Collision insurance.
- 5 Comprehensive car insurance.
- 6 Uninsured and underinsured motorist coverage.
- 7 Gap car insurance.
- 8 See if you can save on your current auto policy with our fast, free rate comparison tool.
- 9 Conclusion
There are many types of car insurance, but the most common are liability, collision and comprehensive. Liability insurance protects you from financial responsibility for damage you cause to other vehicles, property or people in an accident. Collision covers damage to your vehicle when it’s hit by another car or object. Comprehensive covers theft, vandalism and natural disasters such as floods or earthquakes. Uninsured motorist coverage protects you against drivers who don’t have insurance while underinsured motorist covers damages caused by drivers with insufficient coverage.
Liability insurance covers the damage you cause to other people and their property. It’s required by law in most states, but it doesn’t cover your own car or injuries. In addition to these two types of coverage, there are a few other kinds of auto insurance you may want to consider:
- Collision coverage pays for repairs if your vehicle is damaged in an accident with another vehicle or object.
- Comprehensive coverage pays for damages when weather events or vandalism cause damage to your car, such as hail damage or theft.
Medical payments or Personal Injury Protection (PIP) insurance.
Medical payments or Personal Injury Protection (PIP) insurance is a type of car insurance that covers the medical bills and other related expenses for you and your passengers. PIP may also cover lost wages if you can’t work due to an injury sustained in a car accident.
This type of car insurance is usually required by law, but it’s not always included with your basic liability coverage (the coverage that pays for damage done to others). If PIP isn’t included with your policy, it can cost an average of $16 per month according to autoinsurancecenter.com. However, this amount varies depending on where you live, who provides the policy, and other factors such as your age and driving record.
The best way to get this type of cheap car insurance is by shopping around with several different providers so you can compare quotes from different companies before making a decision about which one offers the best deal or value for their customers’ money. You can also save money by opting for fewer types of coverage on your policy—for example: only purchase collision coverage if there’s something special about your vehicle (e g., it’s antique) rather than purchasing comprehensive coverage because comprehensive doesn’t pay off as much when compared against collision coverage costs.”
When you get into an accident, your collision insurance pays to repair your vehicle. That means that if you hit a tree or another car, your collision coverage will help to repair the damage.
If you have comprehensive and collision on your policy, you’ll be covered in most situations if someone else hits your car because they’re likely to be at fault for the accident. If it’s your fault that the accident occurred—for example, if you totaled their car while trying to park—then they can make a claim against either their own comprehensive or collision coverage depending on which type each party has for damage caused by hitting something like a telephone pole versus another object like a tree.
Comprehensive car insurance.
Comprehensive car insurance covers damage to your car caused by a covered event, like fire, theft, vandalism and natural disasters. It also covers damage caused by hitting animals or other cars, falling objects and floods.
Uninsured and underinsured motorist coverage.
Uninsured and underinsured motorist coverage. This is insurance that protects you against accidents in which another driver does not have enough insurance to cover your medical bills or vehicle repair costs.
It’s important to consider how much uninsured motorist coverage you need before purchasing a policy. It’s also important to know what happens if you’re in an accident with someone who has no insurance at all.
Gap car insurance.
Gap car insurance covers the difference between what your car is worth and what you owe on it. If you have an accident, gap insurance will pay the difference between the cost of your vehicle and what you still owe on it.
See if you can save on your current auto policy with our fast, free rate comparison tool.
- Go through your current auto insurance policy and find out what you are paying for. Are there any discounts available?
- Consider switching to a new insurance company, as many of them may offer better rates than your current provider.
- Keep in mind that some discounts are only available when bundled with another type of coverage, such as home or renter’s insurance. Make sure you ask about all applicable discounts when comparing car policies from different providers!
With so many types of car insurance available, it can be hard to know what type of coverage you need. We hope this blog post has helped you understand the different types and their purpose. To get started on finding your own policy, check out our free car insurance comparison tool!