When it comes to purchasing insurance coverage for your vehicle, it’s easy to lose yourself in the terminology and paperwork of all the different types of auto insurance. Suddenly, all the potential plans seem the same to you, and you’re left wondering if you truly have everything you need. After all, there are several forms of coverage that you can apply for, and all of them help in specific situations. Read this guide to the different types of auto insurance coverage to gain an understanding of each plan and how it can benefit you.
When drivers think of the kinds of auto insurance, liability coverage is what immediately comes to mind. These policies provide funds to assist the other driver in a collision where the accident was your fault. Upon ruling that your actions resulted in bodily injury or property damage, liability coverage helps ensure that the other party receives the care they need.
Uninsured Driver Coverage
Though everyone must have some form of liability coverage, some individuals will still drive without it. If you get into a collision with an uninsured driver, you could be left to pick up the costs on your own. Uninsured or underinsured driver coverage protects you from these situations by providing you with extra funds if the other driver’s coverage proves insufficient.
Another type of auto insurance coverage is comprehensive insurance. These plans cover damage from events other than collisions. Paint chips from hailstorms, loss of property from theft, and fire damage are all examples of things that qualify you for compensation under this policy. In most states, this coverage is optional—but it’s always a good option to have. Often, people confuse comprehensive vs. collision coverage, but they are two different types of auto insurance.
As the name suggests, collision coverage deals with the aftermath of a motor vehicle crash. Unlike liability insurance, this coverage assists you, the policyholder, with your own vehicle damage rather than that of the other party. These plans also provide you with funds regardless of whether you were at fault. You know you’ll always have at least some help in the aftermath.
Personal Injury and Medical Payment Coverage
Personal injury protection coverage is an important policy to consider, too. After all, you never know when you could suffer injuries in a crash, and these plans ensure that you can afford treatment. Even if you think you might not need it, this coverage is a must in 13 states and comes highly recommended in all others. The same is true for medical payment coverage—which pays for your direct medical bills following an accident.
This was a quick explanation of the different types of insurance everyone should have. For any additional questions you might have about the types of auto insurance coverage available to you, reach out to Saferoad Insurance. As a premium auto insurance agency in California, we’re dedicated to ensuring that all our customers get the plan they need. We’ll work hard to find you something that works for you. To learn more about finding the right car insurance, contact us or explore our blogs.