The Six Kinds of Auto Insurance Coverage

When it comes to auto insurance, there are six different coverage types offered, it just depends on what you need. It’s important to remember that the minimum required coverage differs from state to state so you may want to check with your state to determine which of these six types of coverage you need and which are optional.

We have compiled the following list of easy-to-understand definitions of the six different coverage options:

  • Liability coverage – is coverage for accidental injury to other people and damage to other people’s property. This includes hospital visits, car repairs, court visits, and defense attorney costs. It is property-related coverage and is always required by law.
  • Comprehensive Coverage – includes damage sustained outside of a traditional auto accident. This can include damage caused by natural occurrences such as fire or wind, or human causes such as theft or vandalism. Again it is property-based but is not required by law.
  • Collision Coverage – Collision coverage is what covers your own vehicle in an accident caused by another person. It is property-related coverage and is always required by law.
  • Medical and Personal Injury Coverage – There are various medical-related types of coverage, including personal injury coverage and medical coverage. Both medical coverage and personal injury coverage cover the insured drivers regardless of who was at fault. While all policies have medical coverage, only some states require specific personal injury coverage as well.
  • Uninsured Motorist Coverage – Uninsured Motorist coverage protects you from a driver that gets into an accident with you, and has a policy that does not meet your state’s minimum standard or simply does not have insurance. In addition, with this coverage, you are not at risk if the other driver’s claim is denied and they cannot afford to pay.
  • Underinsured Motorist Coverage – Underinsured Motorist coverage protects you by paying the full amount of damages to you if the person who hit you reaches a payment limit that does not reflect the total cost of the damages. This coverage extends to everyone who drives your car and can be expanded to encompass the same people riding in different cars.

These are important factors to consider when shopping around for auto insurance coverage. Best Auto Insurance will help you find car insurance rates that fit your budget as well as your state’s minimum requirements.

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