Understanding The Various Types of Car Insurance

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As you may have realized, there are numerous types of car insurance that are available to drivers. These can include comprehensive insurance, medical payments, collision, personal injury protection, and auto liability coverage. These options are considered to be some of the most common types of insurance for cars. However, most drivers are not acquainted with all of these different options and may find themselves confused about which they should choose and how they function. Here is a short overview which explains the basics for each of them.

Collision insurance is a form of auto insurance coverage that will help to pay for the damage that is incurred by any covered vehicle. This is damage that is caused by a collision with an object, vehicle rollover, or a collision with another vehicle. A deductible is required for this form of insurance.

Medical payment insurance coverage is provided throughout the country. It is used for any necessary medical or funeral expenses. This is used for the covered individuals of the insurance clause when the expenses are related to the car accident that has occurred.

Personal injury protection, known as PIP, is a car insurance coverage that pays the medical expenses for those who are covered in the insurance clause itself. It is used for the treatments that are necessary as a result of car accidents. It can also be used to pay for funeral expenses, physical therapy, lost earnings, rehabilitation, and replacement of any services.

Comprehensive insurance is a car insurance coverage that pays for the loss or damage of an insured vehicle. The damage cannot be caused by a rollover or a collision. This coverage is generally used for damage that is associated with theft, hail, flood, hitting an animal, vandalism, fire, or any damages that are not caused by car accidents. Deductibles may apply.

Auto liability cover is insurance coverage that will pay for the damage if the driver is responsible for injuring someone or damaging their property or their vehicle while they are in a car accident. This is coverage that is defined in categories. The first category is based on bodily injury liability, such as medical expenses, special damages, lost wages, etc. The second category is property damage liability, which covers damaged property and can include payment for loss of use. Liability coverage will pay legal defense and any costs of going to court. The state laws will determine the amount of auto liability insurance that is required at minimum.

Having a better understanding of the different types of car insurance coverage can be important because it will provide drivers with insight into which type of coverage they may need the most. Drivers who have questions about insurance coverage are encouraged to get in contact with a local insurance provider for more information and guidance on options that may be an ideal match for them. A good idea is to find a coverage that can provide a combination of the options that are listed here.