Auto Insurance Explained

Posted on: 20 October 2022

When it comes to car insurance, there are many types of coverage available. This allows you to find coverage that works best for you. Keep in mind that there are also different limits and options, so you can go with the package that gives you the coverage you want for a rate that works with your budget. The other options can include things like rental car usage, windshield replacement, and more. When it comes to the types of coverage that are available, this article will explain some of them to you. Here is more on the types of car insurance you should know about: 

Liability coverage

Liability insurance coverage is one of the most important types of coverage. This is due to it being the type that's legally required in most states. This coverage will provide compensation for the injuries sustained by others in an accident, as well as the damage to another party's vehicle caused by your own if you caused the accident. There is a minimum amount of liability coverage you will legally be required to carry that can vary from state to state. However, you can increase that coverage amount as you see fit. 

Collision coverage

Collision coverage is coverage that will cover the damages that have been done to your car. This type of coverage pays out for your car's damage, regardless of whose fault the accident was. 

Comprehensive coverage

Comprehensive coverage will pay for vehicle damage that's caused by something other than a car accident. A couple of examples of the types of things this coverage pays out for include vandalism damage or damage that was caused to the car by a storm. 

There are other options to consider when getting car insurance

Uninsured motorist: This coverage helps cover your damages when the other party in an accident isn't insured. 

Under insured motorist: If you are involved in an accident with someone who has insurance, but it isn't enough to cover the damage your vehicle endured, then this type of coverage will protect you. It will cover what their insurance can't, up to the amount of your policy's limit. 

Medical: This coverage will assist you with paying any medical bills you ended up with when involved in an accident. It may also cover the medical bills of passengers who were in your vehicle at the time of the accident and were also injured. 

Homeowner's insurance: While homeowner's insurance isn't directly related to car insurance, it is added here because you should know that you can often have homeowner's insurance bundled with your car insurance policy to save money on your premiums. 

For more information, contact a local auto insurance provider