The Different Types of Car Insurance Coverage

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types of car insurance coverage
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Car insurance is an essential part of driving, but it can also get expensive. Not to mention how confusing it can be trying to pick which types of coverage you need.

Computing, dwelling, and medical are all types of car insurance you may want to consider. Each of them protects you in different ways.

If you’re wondering what all this means, learn about the different types of car insurance coverage with this handy guide.

Auto Liability Coverage

Auto liability covers losses that arise outside of the legal responsibility of the policyholder. This includes injuries and damage caused to third parties, as well as their vehicles and property.

Liability coverage pays up to the limit of the policy for judgments against the insured driver. It also includes the legal defense costs associated with those judgments.

Uninsured and Underinsured Motorist Coverage

This insurance helps to protect you or anyone listed on your policy if an accident with a driver who does not have any insurance. It also includes drivers who do not have enough insurance to cover the typical car accident settlement amounts. This coverage provides compensation for property damage, bodily injury, and medical costs.

It also includes other damages resulting from an accident if the other driver is at fault and does not have enough insurance. Uninsured motorist coverage also covers hit-and-run cases when the other driver is not found.

Comprehensive Coverage

Comprehensive coverage provides all-encompassing protection for drivers, passengers, and vehicular property. It covers collisions and other vehicular mishaps. It also offers protection against theft, vandalism, fire, hail, earthquakes, and flooding. It allows drivers to repair or replace their vehicles up to the limit of their policy.

Comprehensive coverage can also assist with certain non-collision issues. This includes animal collisions which are becoming more common among drivers. It also offers financial protection from third-party lawsuits.

Collision Coverage

This coverage provides protection from the cost of repairs for a damaged vehicle after an accident that’s caused by a collision. This coverage also protects you if a stolen car is vandalized, or damaged by a natural disaster.

It doesn’t cover damage from fire, water, hail, or any kind of weather-related incident. It can also cover the cost of a rental car if you are in an accident and your vehicle is not drivable.

Personal Injury Protection

Personal Injury Protection (PIP) is car insurance coverage that can give you financial protection if you’re involved in a car accident. It covers medical expenses, lost wages, and some other types of damages such as funeral costs.

PIP may also provide protection for damages suffered by other passengers in the car or relatives who are hurt in an auto accident. PIP can also cover you in cases when you got hit by an uninsured driver, covering you for medical bills and lost wages. PIP coverage also covers you if you accidentally injure someone else during an auto accident and can cover others in the car in case of a hit-and-run accident.

Know the Different Types of Car Insurance Coverage and Insure Yourself Today

Car insurance is a necessity if you own a car. With the right policy, you can protect yourself, your passengers, and your car. Understanding the different types of car insurance coverage available is essential. Make sure to choose the policy that best suits your needs.

Shop around and speak to an insurance broker to compare quotes and find the right coverage for your car.

If you find this article educational, make sure to browse our blog for more interesting reads.

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