What are the Auto Insurance Coverage Types?

types of auto insurance

Deciding on auto insurance coverage types is important, but tricky. In a nutshell, auto insurance coverage breaks down into a few categories: liability, medical, and vehicle-based. Some types of coverage are required; others are optional. All auto coverages, however, are valuable and will protect you financially. Below are five primary types of auto insurance coverage.

Bodily Injury Liability

If you’re held responsible for an accident that injured another person, bodily injury liability will help cover you. It doesn’t cover your injuries or another driver’s injuries who are on your insurance policy. It covers those of the driver of the other vehicle.

Generally, this coverage covers the other drivers:

  • Medical bills
  • Work time lost resulting from the accident
  • Rehabilitation or physical therapy
  • Legal representation
  • Possibly suffering and pain
  • Funeral costs

Medical expenses can get very costly and cause huge financial hardship if you’re stuck having to pay them out of your own pocket.

Property Damage Liability

If you’re found at fault for an auto accident that damaged another person’s property, this coverage kicks in. It doesn’t cover any damage to your property, however. There are fluctuating levels of property damage liability that determines covered damages. When buying your policy, you’ll decide on how much coverage you’ll want to buy and there could be minimums your state requires, particularly if you financed your vehicle.

Collision Coverage

This coverage helps pay for any damage done to your car in the event you hit another vehicle or object such as a lamp post, guard rail, or telephone pole.

Comprehensive Coverage

Comprehensive coverage helps pay for the losses to your car for things like damage due to a storm or theft. It may also cover losses that aren’t accident-related like floods, vandalism, fire, animal collisions, and hail.

Medical Payments Coverage

If you sustain an injury or any of your passengers do during an accident while driving, this coverage may pay for injury-related costs such as hospital visits, X-rays, surgery, and so forth. Some states require you to have this coverage whiles make it optional.

These are some of the common types of auto insurance coverage you’ll discuss with your insurance agent. Other types of coverage you’ll want to talk about include:

  • Uninsured /Underinsured Motorist Protection
  • Emergency roadside service (ERS) coverage
  • Rental car coverage
  • Loan/lease gap coverage
  • Fire and Theft Coverage
  • Personal Injury Protection

There are other coverages as well. There are a number of coverages available to you which can be overwhelming. Your own situation will determine what coverage you need such as the type of vehicle you drive, if you financed it, other insurances you have and so on. It’s important that you understand which coverages are optional and which your state requires.

When deciding on types of car insurance, your independent insurance agent can help you chooses the right coverages for your personal needs.

To get multiple auto insurance quotes instantly, complete our online insurance quote form here.