We have divided the different types of car insurance
coverage into three categories: required auto insurance coverages,
recommended auto insurance coverages and optional auto insurance
coverages.
Required Coverage
Liability coverage is required in most states. Liability coverage
protects you in the event that you are legally responsible for an
accident. Each state that requires liability coverage has a set
minimum that drivers are required to purchase. Check your
state's minimum liability requirements here. In the event of
a serious car accident, the minimum coverage limits required by
law may not be enough.
Recommended Coverage
Recommended coverages are not required by state law but are offered
to you as additional protection. These coverages are useful depending
on your particular circumstances. For instance, collision and comprehensive
coverage may not make sense for an older car. Uninsured
motorist coverage is required in a few states.
- Collision
Coverage - Collision car insurance coverage covers
the repairs to your car when you hit an object such as cars, curbs,
poles, tree, etc.
- Comprehensive
Coverage - Comprehensive coverage pays for damages
to your car in instances of theft, vandalism, fire, floods, fallen
trees, storms, and other acts of nature.
- Underinsured
Motorists Coverage - Underinsured motorist auto insurance
coverage covers your medical and repair bills when your damages
exceed the other driver's liability coverage limits.
- Uninsured
Motorists Coverage - Uninsured motorists auto insurance
coverage protects you against drivers who are not insured or a
hit-an-run driver.
Optional Coverages
Optional coverages are not necessary but may be worth considering
if you are not covered under other types of insurance or will have
financial difficulty if a particular situation should occur.
- Medical
Payments Coverage - Medical payments coverage pays
for medical expenses, regardless of who's at fault, if you and/or
passengers in your car are injured in a car accident. Medical
payments coverage is valuable if you do not have health insurance
through another source.
- Personal
Injury Protection (PIP) - PIP covers you and your
passengers in an accident by paying for medical expenses, lost
of income, loss of service and funeral expense regardless of fault.s
- Car
Rental Coverage - Car rental expense coverage reimburses
you for the cost of renting a car if your car was damaged in an
accident.
- Towing
Coverage - Towing coverage provides emergency and
towing services in the event of an accident or breakdown.
Read more information on understanding
your auto insurance policy.
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