Auto insurance is made up of different coverages designed to financially protect individuals in the event of an accident or vehicle damage. Understanding the different types of auto insurance coverage is essential for choosing the right policy. Here are some of the main types of auto insurance coverage:
1. Liability Coverage:
Definition: Liability coverage protects individuals if they cause damage to others and/or their property during an accident.
Source: “Liability coverage is required in most US states as a legal requirement to drive a car. Liability insurance may help cover damages for injuries and property damage to others for which you become legally responsible resulting from a covered accident” .
2. Collision Coverage:
Definition: Collision coverage may cover damage to one’s car after an accident involving another vehicle and may help to repair or replace the covered vehicle.
Source: “Collision insurance may cover damage to your car after an accident involving another vehicle and may help to repair or replace a covered vehicle” .
3. Comprehensive Coverage:
Definition: Comprehensive coverage provides financial protection for the insured’s vehicle in situations not related to a collision, such as theft, vandalism, or natural disasters.
Source: “Comprehensive insurance”.
4. Personal Injury Protection (PIP) Coverage:
Definition: PIP insurance, also known as no-fault insurance, helps pay for losses related to injuries from a car accident, regardless of who was at fault.
Source: “(PIP) insurance, also known as no-fault insurance, helps pay for losses related to injuries from a car accident, no matter who was at fault” .
5. Additional Optional Coverages:
Definition: Additional optional coverages may include accident forgiveness coverage, full glass coverage, car towing coverage, and rental car insurance.
Source: “You can typically fill gaps in your car insurance policy by purchasing optional coverage types such as accident forgiveness coverage, full glass coverage, car towing coverage, and rental car insurance” .