Auto insurance coverage can be a confusing topic for some drivers because of the large variety of choices and the need to differentiate between mandatory or optional requirements. Car insurance options vary based on your location, but there are common types of coverage that are available in most states.
Collision coverage is one of the most common types of car insurance and protects you during an accident by covering the damage to your vehicle. This is optional, and some states do not require it, but insurance companies recommend it because it can help cover your costs after a crash. You will have to consider the deductible that comes with this coverage since it can vary greatly.
Liability coverage is required, but each state sets its own guidelines for this type of car insurance. In general, it covers the damage you cause during an accident and includes both property and people. There are limits to how much an insurance company will pay out for the damage, so it is important to be aware of the rules.
Medical coverage is not a mandatory insurance requirement in some locations, but it can help with health expenses after an accident. This type of coverage will assist you with medical bills, funeral costs and bills from other passengers. However, it differs from the personal injury coverage, and the two types should not be confused. Personal injury insurance will pay for some medical expenses, but there may be strict limits.
Uninsured and Underinsured Motorist Coverage
The uninsured and underinsured motorist coverage may not be required in every state, but it is an important type of insurance. It covers the expenses that can arise from drivers who do not follow the law and either lack insurance completely or do not have the minimum requirements. The coverage can include both bodily and property damage.
Despite its name, comprehensive coverage does not actually cover everything that a driver might expect. It focuses on coverage for incidents that are not accidents, so thefts or floods are included. Each insurance company has its own specific list of items that are part of the policy, and it is crucial to study them. In general, this type of car insurance will help you after a fire, flood, vandalism, theft and other limited cases.