Auto insurance plans can vary widely based on your needs, location, and vehicle type. Here’s a rundown of the main types of auto insurance coverage and what they generally include:
- Liability Insurance:
- Bodily Injury Liability: Covers medical expenses and legal fees for injuries you cause to others in an accident.
- Property Damage Liability: Pays for damage you cause to someone else’s property, like their car or a fence.
- Collision Insurance:
- Covers damage to your own vehicle resulting from a collision, regardless of who is at fault.
- Comprehensive Insurance:
- Covers damage to your vehicle from non-collision events, such as theft, vandalism, natural disasters, or hitting an animal.
- Personal Injury Protection (PIP):
- Provides coverage for medical expenses, lost wages, and other costs for you and your passengers, regardless of who caused the accident. This is mandatory in some states.
- Uninsured/Underinsured Motorist Coverage:
- Protects you if you’re in an accident with someone who doesn’t have sufficient insurance or no insurance at all.
- Medical Payments Coverage:
- Similar to PIP, it covers medical expenses for you and your passengers after an accident, regardless of fault.
- Gap Insurance:
- Covers the difference between what you owe on your car loan or lease and the current market value of your vehicle if it’s totaled.
- Roadside Assistance:
- Provides services such as towing, battery jump-starts, or flat tire changes if your vehicle breaks down.
- Rental Reimbursement:
- Covers the cost of a rental car while your vehicle is being repaired after a covered claim.
When choosing an auto insurance plan, consider your vehicle’s value, how much you drive, your budget, and state requirements. It’s also a good idea to compare quotes from different insurers to find the best coverage for your needs and circumstances.