Types of Auto Car Insurance: Taking the Mystery Out of Auto Cars Insurance Coverage

Everyone who drives any kind of auto needs to have car insurance. The policy you purchase is based on a wide variety of factors that includes what kind of vehicle you drive, where you live, how far you are driving and what kind of driving record you have. You will find that there are a lot of different options you can choose from in the coverage you get. Some types of coverage are required by law and others are options you can select that might save you money if you have or are involved in an accident.

Mandatory Coverage:

  • Liability – This coverage is mandatory in all states, but each state mandates how much you need in this type of coverage. It is really great because it will pay for any kind of accidental bodily injury and property damages, medical expenses, pain and suffering and lost wages that result from an accident you are involved in.

  • PIP – Personal Injury Protection (PIP) is required by law in a lot of states. This coverage will pay for medical expenses for the insured driver no matter who is at fault.

Optional Coverage:

  • Collision – This coverage pays for any damage you can or is caused by you in an accident whether it’s another vehicle or an object.
  • Comprehensive – This plan pays for any loss or damage to the insured vehicle that happens when it is not being driven. It could include a vehicle fire, theft or some other natural disaster that damages your vehicle.
  • Medical Coverage – This option will pay any and all medical expenses regardless of who is at fault in a vehicle accident.
  • Uninsured Motorist – This is a very nice option since not everyone has coverage even though it’s required by law in most states. This covers you and your vehicle if you hit or get hit by someone who does not have any type of vehicle policy.
  • Rental Reimbursement – A lot of times after an accident it might take time to repair your automobile and this coverage gives you a free rental during the time your vehicle is out of commission.