When it comes to protecting your car, auto insurance is a must. It can provide financial protection in the event of an accident or other damage to your vehicle. But did you know that there are different types of auto insurance?
Let’s take a look at the different types of auto insurance and how they can help protect you and your vehicle.
Liability insurance
One type of insurance coverage is liability insurance, which covers legal responsibility for bodily injury and property damage caused by you or another driver operating your vehicle with your permission.
Liability coverage typically includes two components: bodily injury liability and property damage liability. Bodily injury liability pays for medical expenses resulting from injuries caused by an accident in which you are found at fault, while property damage liability pays for damages to another person’s property caused by an accident in which you are found at fault.
Most states require some form of liability protection as part of their minimum automobile insurance requirements.
Collision insurance
Collision coverage helps pay for repairs to your own vehicle if it is damaged in an accident with another car or object. This type of coverage is optional but recommended.
If you have a loan on your car, many lenders will require collision coverage as part of the terms of the loan agreement. Collision coverage may also be required if you lease a car since it protects the lender’s investment in the vehicle.
Comprehensive coverage
Comprehensive coverage helps pay for repairs or replacement costs if your own vehicle is damaged due to something other than an accident with another car or object (such as theft, vandalism, fire, hail, or flooding).
While comprehensive coverage is not required by law, it may be required if you have an outstanding loan on your car since it provides additional protection for the lender’s investment in the vehicle. Like collision coverage, comprehensive coverage can also be required if you lease a car.
As a responsible car owner, having adequate auto insurance can help protect both you and your vehicle from unexpected financial losses due to accidents or other damages. By understanding what types of auto insurance are available and what they cover, you can make sure that you have the right amount and type of auto insurance necessary to keep yourself protected on the road. With so many different options available, there’s no reason why everyone shouldn’t have adequate auto insurance!