When you purchase auto insurance, you’re buying a package of coverages that together make up your policy. That’s why knowing what kinds of automobile insurance you need and how to select your coverage limits is beneficial.
We’ll go over typical auto insurance coverages as well as optional extras that you may add to your policy in this post.
So, strap up, and let’s get started.
We suggest collecting quotes from different companies whenever you browse for car insurance so you can compare coverage and pricing.
Insurers tailor their rates to each individual, so what works for your neighbor may not work for you.
What Are The Different Car Insurance Types?
Liability coverage, collision coverage, comprehensive coverage, medical payments coverage, personal injury protection, uninsured and underinsured motorist coverage, etc… are the most popular categories of car insurance that make up a conventional policy.
You may mix and match these forms of vehicle insurance with whatever non-standard, supplemental coverage choices you wish to include when you buy a policy from any insurer.
Some coverages may be required in your state, while others may be optional.
Let’s look at each of the common forms of automobile insurance in more detail:
- Business/Personal Liability Insurance (BI/PD)
Liability vehicle insurance protects you from harming others and their property. It consists of two parts: physical injury liability and property damage liability.
If you cause an accident, liability insurance pays for the damages, medical bills, and legal costs if the other party files a lawsuit against you. It also covers the burial costs of the other party.
Any losses or injuries to you or your car are not covered by liability insurance.
