Auto insurance is one of those things you have to have if you want to drive. But what does it actually cover? And how do you know if you have the right amount? Here’s a breakdown of the different types of coverage and what they mean for you and your car.
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This is the coverage that pays for damages if you’re at fault in an accident. It can cover things like repairs to the other car, medical bills, and even legal fees. The amount of liability coverage you need depends on your state’s laws, but it’s a good idea to have at least the minimum amount.
This is the coverage that pays for damages to your own car if you’re in an accident. Whether you hit another car or a tree, collision coverage can help pay to repair your car. Again, the amount you need depends on your state’s laws and your own personal preferences.
This is the coverage that pays for damages to your car that are not caused by an accident. Things like theft, vandalism, and weather damage are all covered by comprehensive coverage. This is usually optional, but if you have a newer car it’s a good idea to have it.
Uninsured/Underinsured Motorist Coverage
This is the coverage that pays for damages if you’re in an accident with someone who doesn’t have insurance or doesn’t have enough insurance. Even if you have the minimum amount of liability coverage, it might not be enough to cover all the damages if the other driver is at fault and doesn’t have enough insurance. This coverage can help fill in the gaps.
Medical Payments Coverage
This is the coverage that pays for your medical bills if you’re in an accident. Whether you’re injured in a car accident or a pedestrian accident, medical payments coverage can help pay for your medical expenses. This is usually optional, but if you don’t have health insurance it’s a good idea to have it.
Personal Injury Protection
This is the coverage that pays for your medical bills and lost wages if you’re in an accident. It can also cover things like child care and funeral expenses. Personal injury protection is required in some states, but not all.
Now that you know what all the different types of coverage are, you can start shopping for auto insurance. Be sure to compare rates and coverage levels to find the best policy for you.