Auto insurance is a type of insurance coverage that protects you financially in the event of an accident, theft, or damage involving your vehicle. It typically includes several types of coverage, each designed to protect different aspects of your car and driving.
Here are the main types of auto insurance coverage:
- Liability Coverage: This is mandatory in most states and covers damages to others in an accident where you are at fault. It usually includes:
- Bodily Injury Liability: Covers medical expenses for injuries to others.
- Property Damage Liability: Pays for damage to someone else’s property, like their car or a fence.
- Collision Coverage: This covers damage to your own vehicle if you’re in an accident, regardless of who is at fault. It’s usually optional but can be required by lenders if you have a car loan.
- Comprehensive Coverage: This covers damage to your car caused by events other than a collision, such as theft, vandalism, natural disasters, or hitting an animal.
- Uninsured/Underinsured Motorist Coverage: This provides protection if you’re involved in an accident with a driver who doesn’t have insurance or doesn’t have enough insurance to cover the damage.
- Personal Injury Protection (PIP) or Medical Payments (MedPay): This helps cover medical costs for you and your passengers in the event of an accident, regardless of who is at fault.
- Roadside Assistance: This covers services like towing, flat tire changes, or lock-out assistance.