Types of Car Insurance

Car Insurance Types

We often talk about auto insurance as though it is simply one item but in reality there are multiple types of auto insurance and it will be your job to decide which you need and at what level of coverage.

• Liability Insurance– this is the most important type of auto insurance. This protects you against paying the cost of any damage or personal injury that is caused by your automobile. Most states require that you have at least minimum levels of liability insurance.
• Collision Insurance – pays for your vehicle repair or replacement if you are the driver who is found to be responsible for an accident. If you are leasing or making payments you are often required to carry collision insurance as a safety precaution.
• Comprehensive Insurance – will cover the repair or replacement of your vehicle if there is damage done by an unknown party (hit and run, vandalism) and/or a tree falls on your car.
• Personal Injury or Medical Payment – provides for treatment caused by an accident regardless who is at fault. Limited to immediate treatment though.
• Underinsured or Uninsured Motorist – protects you when you are not to blame for the accident but the other driver does no have insurance or is not insured well enough.
• Gap Insurance – If you are leasing a car or making payments on your vehicle it is possible to owe more than the “replacement value” of the vehicle. Gap insurance covers the difference between the two.
• Insurance Policy Extras:
  • Towing Insurance
  • Auto Glass Insurance
  • Rental Car Insurance
  • Roadside Assistance