Different Types of Auto Insurance

When you get ready to compare auto insurance quotes from competing companies, it is important that you know what types of car insurance policies there are and what types of car insurance you need to be within the legal limits of your state.

Auto insurance comparison, either online or in person, is the best way for you to get the cheapest car insurance premium you can.

 

Comparing rates is easy and quick and can be done 24/7 from the comfort of your couch with your laptop.

- Personal Injury Protection (PIP)

This type of insurance is part of no-fault states and their basic insurance requirements for registration. This insurance will cover the costs of medical bills and injuries for the driver and passengers of the policyholder’s vehicle. This insurance does not cover any other persons or vehicles involved in an accident. As part of a no-fault state’s requirements, this insurance does not assign fault in an accident and is designed for quick funding of the injured for their medical expenses.

This insurance is generally not sufficient to cover all the medical expenses that can occur during an accident and the minimum state requirements should be a starting point as to how much insurance you purchase on these types of policies.

- Property Liability

The liability portion of any policy pertains to both physical and property damage.

If you are responsible for the accident, your property liability will cover damages to whatever you may have hit in the accident. This insurance covers more than damage to another vehicle. It can also be used to repair property such as a building or a porch.

- Bodily Injury Protection

The second half of your liability coverage will pay for injury or death of another person due to an accident that is found to be your fault.

In addition to coverage for pain and suffering, loss of wages or funeral expenses, this insurance can be instrumental in hiring you an attorney should you find yourself being sued for anything related to the accident.

- Comprehensive

Comprehensive insurance covers damages to your vehicle that are not related to accidents. These damages can be from natural disasters, vandalism or even theft.

Should a tree limb fall on your car, the comprehensive portion of your policy will pay for the damages. Likewise, should you hit a deer, your comprehensive policy will pay for animal damage.

- Collision

The collision policy covers anything related to an auto accident.

It takes care of repairs and bodywork, as well as mechanical failures relating to the accident and some policies include towing and rental under separate provisions.

The deductible is applied to your total repair bill and the bodyshop will receive a check for the difference. You will be responsible for paying the deductible that you have chosen.

- Underinsured Motorist and Uninsured Motorist

Both of these insurances are for your protection.

Regardless of whether there are state laws requiring insurance or not, too many uninsured motorists are still on the highways.

The uninsured motorist policy will cover you and your passengers for injury or death that may occur if you are hit by either an uninsured motorist or a hit and run driver.

The underinsured motorist is only carrying the minimum state requirements.

If you are involved in an accident with someone who has insufficient insurance coverage, then your insurance will pick up the cost of the repairs that exceeds the at-fault driver’s coverage.

Both of these insurances limits are determined by how much insurance you purchase and limits that you set in your policy.

With so many different types of insurance available, you may find auto insurance comparison overwhelming, but comparing insurance quotes is not hard. There are many different ways that you can compare auto insurance quotes that are as simple as entering your zip code. Compare and save today.