What type of car insurance do I need?
Searching for the right auto insurance can be confusing, especially when there are many coverage options available. The answer to the question, “what coverage do I need?”, depends on a number of factors including the state that you live in, the kind of vehicle you have, how many cars and drivers you need to insure, and whether you own your home or rent it.
This resource will give you a better idea of what kinds of coverage are available to you and which will likely be the best fit for your situation.
Types of auto insurance coverage
Auto insurance protects you from unforeseen costs if your vehicle is ever in an accident. However, different types of auto insurance coverage protect against different expenses you may incur related to accidents or damage to your vehicle. Depending on where you live, your lifestyle, and the type of vehicle you own or lease, you’ll need one or more of the six common types of auto insurance.
- Auto liability coverage – this type of coverage helps you pay for another person’s property damage and medical costs if you are responsible for an accident.
- Uninsured and underinsured motorist coverage – this type of coverage helps you pay for your own property damage and injury costs if another person is responsible for your accident but is not insured or has a low level of liability insurance.
- Collision coverage- coverage helps you pay to repair or replace your vehicle if you damage it by hitting another vehicle or an object such as a pole, a fence, a mailbox, etc.
- Comprehensive coverage- comprehensive coverage helps you pay to repair or replace your vehicle if it is damaged by circumstances beyond your control such as vandalism, theft, storm damage, or fire.
- Medical payments coverage- this type of coverage helps cover the medical costs of the driver and passengers of the insured vehicle including hospital or doctor’s visits and certain treatments and diagnostics.
- Personal injury protection – personal injury protection helps cover the costs of injuries, and also includes loss of income, childcare, and other associated expenses.
