Most people have a pretty firm grasp on what auto insurance is and why it’s important. But even experienced drivers can get lost in the weeds when it comes to picking apart the different types of auto insurance that are available. Drivers have a lot of options, which is great for choice and personalizing your insurance plan, but can be overwhelming at first glance. To simplify things, here are six different kinds of auto insurance that are important for every driver to know.
This is the coverage that most are familiar with: it covers the damages to your car if you get in an accident with another vehicle. Depending on your plan, it can cover accident with another vehicle as well as other accident you may get into while driving—like hitting a tree or backing into a pole.
This is another elemental part of auto insurance coverage. Liability insurance covers you when you cause damage to another person’s vehicle or property. It also covers injuries that other people may have suffered as a result of an accident you were involved in, also known as bodily injury. This is a vitally important type of coverage—being found liable in an expensive accident and not having the funds to cover can cause major financial problems.
“Expect the unexpected” is the idea behind comprehensive coverage. This type of coverage covers you in the case of damage to your car outside the realm of an accident. Events like hitting an animal while driving, having your car stolen, natural disasters, or fire can all be covered with comprehensive coverage.
Personal injury can go a long way in covering you and your passengers in case of an accident. It can cover the medical expenses for you and your passengers in an accident, regardless of who was at fault.
Bodily injury is often part of liability coverage. Bodily injury insurance is especially useful if you should ever get into an accident and get taken to court by another driver or pedestrian, as it can help pay for your legal fees.
This can be a very useful type of coverage to have if you ever have an accident with a driver who doesn’t have any insurance. In many states, between 15-20% of drivers may not have insurance, meaning you have nearly a 1-in-5 chance of getting in an accident with them. This kind of insurance is useful should you ever get in an accident with a drive who doesn’t have insurance, or whose insurance fails to cover the damages to your car.
It’s not uncommon for friends to borrow cars—it can be just for a quick run to the store, covering a long leg of a road trip, or you may give your friend unfettered access to a car you don’t necessarily use every day. Of course a friend will always make a concerted effort to drive […]Read More >
While thorough research and life experiences can leave any policyholder feeling prepared and informed, a few myths can still linger about - convincing and confusing anyone who comes across them.Read More >
Most people have a pretty firm grasp on what auto insurance is and why it’s important. But even experienced drivers can get lost in the weeds when it comes to picking apart the different types of auto insurance that are available. Drivers have a lot of options, which is great for choice and personalizing your […]Read More >
It’s well-known that drivers are required by law to have liability insurance—motorists need to be able to cover the costs if they are at-fault for an accident with another driver. So you may be asking: what is collision coverage and why do I need it? While not required by law to have, collision coverage is […]Read More >