Types of Auto Insurance You Need to Know About

The five types of auto insurance you need to know about are: liability, collision, comprehensive, personal injury, and uninsured motorist coverage. They’re all important, but some are more likely to benefit you than others, depending on your situation and your driving habits. As with most insurance policies, the less often you have to make a claim, the less you pay in premiums every month.

Liability

There are two types of liability coverage: bodily injury and property damage. Bodily injury coverage pays for the medical bills and lost wages of the people who were injured in an accident that you caused.

Collision

Covers damage to your car from hitting another car or object, whether or not it was your fault. If you have an accident and it was your fault, your collision coverage will pay for the repairs to your car minus your deductible.

Comprehensive

Also known as other than collision coverage, this type of insurance protects your vehicle from damage caused by events that are out of your control, such as theft, fire, or weather damage. If you have a loan or lease on your vehicle, your lender will likely require you to have comprehensive coverage.

Uninsured/Underinsured Motorist Coverage

Uninsured or underinsured motorist coverage is important because it protects you in the event that you are hit by a driver who does not have insurance or does not have enough insurance. This type of coverage can help pay for your medical bills, lost wages, and other damages.

Emergency Roadside Assistance Coverage

Do you know what type of roadside assistance coverage you have with your auto insurance policy? If you don’t, now is the time to find out. Many people are surprised to learn that their auto insurance policy doesn’t cover them for things like flat tires or dead batteries. Emergency roadside assistance coverage can help you out in these situations and more. Here are five things you need to know about this type of coverage:
  1. What is covered?
  2. What is not covered?

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