Types of Car Insurance: All You Need to Know About Car Insurance

How to keep yourself covered while you’re on the road? Car Insurance is one of the key factors in owning a car. No matter how safely you drive, there’s always a chance of getting hit or hitting someone. If you don’t wish to make your car your liability, then having car insurance is absolutely necessary. You should understand that having car insurance and “types of car insurance” is mandatory by law, it’s not an individual’s choice. Choosing the right kind of insurance can make all the difference in the chance of a crash. There are several car insurance coverage types and opting for the ideal car insurance depends on several factors. 

Your driving ability, your driving habits, the type of car that you drive and where you live, urban area and rural areas make a huge difference as well while choosing the perfect car insurance for your vehicle. You also have to consider the fact where you park your car, whether it’s parked in your garage or on the street. 

Types of Car Insurance

Insurance agents help out those who don’t know about the basics of automotive insurance. If you do know about the basics of car insurance then you can choose the best car insurance for yourself. Choose your insurance agent perfectly and they can help you find types of car insurance policies that meets up to the standards of your state. Multiple agents can offer multiple policies at different prices, our advice is that you shop around for a little bit so you can figure out the best insurance policy for yourself without having to break your bank. 

In the end, you would want to pick the plan that offers you the best possible protection and comes under an affordable price. Here’s a list of types of car insurance policies that you can choose from. 

1. Collision Car Insurance

The definition of Collision car insurance is pretty simple and straightforward. It covers any damage that is done to your car in the case of a collision or accident. Whether you hit a car or a lamppost or any other object, you will get coverage for damages done. It is one of the most commonly used car insurance coverage types.

Collision coverage isn’t required in any state in the US but lenders typically require to get this insurance if you’re lending or leasing a car. Keep in mind that the Collision insurance sounds broad but it won’t cover every type of crash and collision. Here’s a list of collision it will cover:

  • A crash with another car
  • A collision with an object such as tree or mailbox
  • Your car rolling over
  • Another driver hitting your car

2. Comprehensive Car Insurance

Comprehensive car insurance is a coverage that allows you to recover damages done to your vehicle in the case it is stolen or damaged in a scenario that didn’t include collision. If you’re financing or leasing your car your lender will most probably require comprehensive coverage. If you are searching for a type of car insurance then you may want to consider getting comprehensive insurance. Here are all the situations comprehensive car insurance covers. 

  • Theft
  • Vandalism
  • Fire
  • Natural Disasters
  • Falling Objects
  • Damage done by animals
  • A civil disturbance (Riot)

3. Liability Car Insurance

Liability insurance covers you if you are in an accident where you are found guilty or at fault. It covers the cost that is related to bodily injuries and property damages, including medical, funeral, and legal expenses. It also covers loss of income, pain, and suffering. It is a pretty good type of car insurance to have if you accidentally hit someone.

Liability coverage is mandatory by law in every state except New Hampshire. So if you’re purchasing a brand new car or just renewing your insurances then we suggest you get liability car insurance. Here’s a complete list of everything that’s covered under Liability Car insurance. 

  • Covers the repair/replacement cost of the damages property.
  • Cover Medical bills of party injured.
  • Will cover third party injury, death, or damage to a third party.

4. Personal Injury Car Insurance

Personal Injury car insurance caters to the injuries and damage to the owner. A personal Injury car insurance covers the cost of medical expenses associated with an accident of you and your passengers regardless of the fact whose fault the accident was. 

It also covers medical and funeral expenses, lost wages, and loss of essential services. The personal injury car insurance is mandatory in some states, optional in other states and it is not available in 28 states. Here’s everything that is covered in Personal Injury Car insurance. 

  • Medical Expenses
  • Lost wages
  • Substitute services
  • Funeral expenses

5. Uninsured and Underinsured Motorist Car Insurance

Uninsured and underinsured motorist insurance covers property damage and medical expenses when your car runs in an accident and the responsible party doesn’t have insurance or doesn’t have a huge enough sum insured to cover your damages. It is also a type of Personal Injury insurance. This type of insurance is optional in some states and is mandatory by law in other states. Here’s what is covered in Uninsured and Underinsured Motorist car insurance. It the least used car insurance coverage types but it still comes in handy if you run into any accident.

  • Coverage for injuries
  • Coverage for property damages

Conclusion: Types of Car Insurance Policies

As you understand by now, there are several types of car insurance. Choosing an ideal one dwells on several factors. The types of car insurance we have listed above are a few of the most important and most mandatory types of car insurance. Choose from the list below or pick an insurance agent to help you find the ideal car insurance based on where you live, your driving habits, and the type of car you drive. 

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