Types of Car Insurance Cover

Are you purchasing car insurance for the first time? Congratulations - it may seem like getting one is just putting added strain on your wallet, but the fact is that it can spare you from the burden of shelling out huge sums of cash should an accident choose to ruin your car and ultimately life.

However, the sheer number of information you will encounter just before you buy car insurance can leave you with a nasty headache and more pressing questions to be answered rather than answers to your questions.

Fret not because we've got you covered! Below you will come across the most common car insurance coverage types - every single one of them simplified to spare you from scratching your head, thus allowing you to make the right decision. You definitely want to pay for something that's beneficial rather than detrimental to your life.

Liability Coverage

In most states and many other parts of the planet, having at least the minimum liability coverage amount is compulsory. This type of car insurance coverage can come in very handy most especially if you're the one who's accountable for the car accident. So in other words, it can work to your utmost advantage.

Whether the accident that you have caused has resulted in the injury of another person (bodily injury liability) or damage to someone's property (property damage liability), liability coverage may help to pay for the damage.

Collision Coverage

A car accident involving a collision with another vehicle can definitely lead to damage to your car and ultimately bank account due to the resulting repairs. The very same problem may strike even if there's no other vehicle involved, such as when you hit an object like a tree, fence or lamppost. Luckily, there's collision coverage that may have your back.

Thanks to this type of car insurance cover, it's possible for you to be spared from the financial stress of having your vehicle fixed or even replaced - up to the actual cash value and also minus deductibles.

Medical Payments Coverage

Just like what the name says, medical payments coverage is something that may help to shoulder medical expenses just in case there are physical injuries stemming from a car accident. This car insurance cover's benefits can be felt if you, your passengers or your family members driving the vehicle end up injured and needing medical attention.

Costs covered by such car insurance cover include a lot, ranging from surgeries, x-rays to follow-up hospital visits. By the way, medical payments coverage is mandatory in some states while optional in other.

Personal Injury Protection

At first glance, it would seem like personal injury protection or simply PIP is the same thing as one that we have just discussed, and that's medical payments coverage. What makes the two seem similar is that both may help to cover your medical expenses resulting from injuries brought about by a car accident.

However, PIP may also help to shoulder expenses that are outside of a medical facility, such as lost income and child care costs. By the way, just like medical payments coverage PIP can be required or optional, depending on the state.

Comprehensive Coverage

Refrain from assuming that the perks of purchasing car insurance can be felt only after encountering an accident on the road. Take for example what's called comprehensive coverage: it may help to pay to replace your vehicle if it's stolen, or repair your prized possession if it's damaged due to reasons other than a collision.

This particular type of car insurance cover can spring into action if the likes of theft, vandalism, fire, hailstorm or a fallen tree has just wreaked havoc on your vehicle.

Uninsured/Underinsured Motorist Coverage

Just because you have car insurance doesn't mean right away that other motorists, in particular those who may end up hitting you, have one as well. This is when the advantage of purchasing uninsured or underinsured motorist coverage becomes clear as crystal - it serves as a guarantee that your needs may be paid for.

If you are hit by an uninsured motorist, uninsured motorist coverage may help to pay for your medical needs and, in some states, even car repair needs. If you are hit by an underinsured motorist, underinsured motorist coverage may help to cover your medical bills if the other party's liability insurance is not enough to pay for everything.

Other than the above-mentioned types of car insurance cover, there are some coverages that you may be able to add to them for your total peace of mind. Some of them include:

  • Classic car insurance coverage
  • Ridesharing coverage
  • Towing and labor cost coverage
  • Gap coverage
  • Rental reimbursement coverage
  • Transportation expense coverage
  • New car replacement coverage

It's a good idea to spend time talking with your car insurance agent to learn more about your options, thus allowing you to come up with a policy that suits your needs to a T.

Potential Rate Discounts

If you qualify for discounts, you may save the amounts shown below.

Discount Savings
Multi-policy $64
Multi-vehicle $61
Homeowner $17
5-yr Accident Free $81
5-yr Claim Free $86
Paid in Full/EFT $47
Advance Quote $66
Online Quote $94

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Discounts are estimated and may not be available from every company or in every state.

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