Types of Car Insurance - What Options Do You Have?

Just like there are a numerous types of vehicles and drivers on the streets, there are numerous types of car insurance available for purchase. The types of insurance coverage that you select will depend on many factors, such as the type of vehicle you own, your ownership status, the age of the drivers in your household, how much you drive your vehicle and how many vehicles you own. How much money you want to spend will also impact the type(s) of insurance products that you should purchase.

Liability

The most basic type of car insurance is basic liability insurance. Liability insurance only covers damage that impacts people other than the car's owner/driver. In simpler terms, liability insurance covers damage that you are liable to pay for, such as medical bills and property damage if you are at fault in an accident. This type of insurance is required by most states.

Liability insurance comes in several forms, including bodily injury liability and property damage liability. Each state will set minimum levels of coverage for both of these types of liability insurance.

Comprehensive Insurance

Comprehensive insurance is a policy that covers nearly any type of damage that your car sustains that is not the result of a collision with another car, truck or SUV. This type of insurance is used to pay for damage caused by animals colliding with your vehicle, by floods, rock chips and storms. This type of insurance is optional, but a good option if you can afford it.

Underinsured and Uninsured Driver Coverage

Underinsured driver coverage is a car insurance product that provides you with a cushion of financial protection in the event that the driver who was at fault for the accident does not have enough insurance to cover your property or bodily injury damage. Uninsured driver coverage offers similar protection, but it goes into effect when the other driver has no insurance. These insurance products protect both you and any passengers that are in your car at the time of the accident.

Physical Damage Insurance

Another insurance product that will protect your car in the event of an accident is physical damage insurance. This product is activated when you are at fault and your vehicle is damaged. It will pay for repairs and possibly even the replacement cost of your vehicle if it has been totaled.

Optional Coverage Items

Many insurance companies not only offer major policy options, like the ones mentioned above, but they also offer al a carte options as well. These options include road side assistance, flat repair and windshield repair and replacement options. These al a carte options are usually inexpensive and offer support for small repairs that can secure the drivability of your vehicle and that can offer you peace of mind.

Sources:

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