Types of Auto Insurance
Liability Insurance:
Bodily Injury Liability: Covers medical expenses, lost wages, and legal fees for injuries sustained by others in an accident for which you are at fault. It also provides protection if the injured parties file a lawsuit against you.
Property Damage Liability: Covers the cost of repairing or replacing property damaged in an accident you caused, such as another person’s vehicle or fence.
Collision Insurance:
Covers damage to your vehicle resulting from a collision with another vehicle or object, such as a tree or a guardrail. Collision insurance pays for repairs or replacement of your car regardless of who is at fault.
Comprehensive Insurance:
Protects your vehicle against non-collision-related damages, such as those caused by theft, vandalism, fire, natural disasters (e.g., hurricanes, earthquakes), and animal collisions (e.g., hitting a deer). It also covers windshield damage.
Personal Injury Protection (PIP):
Also known as no-fault insurance, PIP covers medical expenses for you and your passengers, regardless of who is at fault in an accident. It may also cover lost wages and other related expenses.
Uninsured/Underinsured Motorist Coverage:
Provides protection if you’re involved in an accident with a driver who has no insurance or insufficient coverage. It helps cover medical expenses and damages that the at-fault driver cannot pay.
Roadside Assistance:
Offers services such as towing, battery jump-starts, flat tire changes, and lockout assistance if your vehicle breaks down while on the road.
Covers the cost of renting a vehicle while your car is being repaired due to a covered claim, such as an accident or theft.
Coverage Options
Minimum Liability Coverage:
Every state has minimum liability insurance requirements. This coverage is the bare minimum needed to legally drive, but it may not be sufficient to cover all damages in a serious accident. Consider purchasing higher limits for better protection.
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