6 Types of coverage in car insurance. What are they? 6 Types of coverage in car insurance. What are they?

6 Types of coverage in car insurance. What are they?

Having a car insurance is very important, because nobody's immune to car accidents, natural disasters or theft. Car insurance can help you save a lot of money on these events.

1. Comprehensive coverage

Sometimes it’s not necessary to be in a car accident to need repairs. There’s always the possibility of an animal or any kind of natural disaster damaging your vehicle. You can also keep the annual cost lower by setting your deductible to, for example, $1000. This means that you’ll be responsible to pay the first $1000 of any damages if they happen, while your insurance will pay for the rest, up to the policy limits.

2. Liability coverage

In case an accident takes place, this will cover the bodily injuries and property damages. Many companies have a three-part structure, which includes: the amount that they’ll pay for each person’s injuries, the total amount they’ll pay for all injuries and the amount they’ll pay for property damage. These sums of money are per accident and come in thousand-dollar increments. They’re typically shown as 50/100/50 or 150/300/100.

3. Medical payments coverage

This is an additional coverage that covers extra medical payments that aren't included in the liability coverage. You can choose the maximum amount of money they’ll pay, which affects the cost of your monthly fee. Additionally, this will cover the medical bills if you’re injured by a vehicle as a bicyclist or a pedestrian.

4. Uninsured/Underinsured motorist coverage

If you’re unlucky enough to be in a car accident and the other driver’s uninsured or underinsured, this coverage will still protect you. It includes bodily injuries and property damage, even in a hit-and-run situation.

5. Collision coverage

It’s an optional coverage that helps you pay for any repairs or replacements that your vehicle may need in an at-fault accident. This could be required in case you’re leasing or financing a car.

6. Personal injury protection

This coverage isn’t mandatory in all states, but can help you save money on medical expenses. This extends to the driver as well as other passengers, even if they don’t have any health insurance.

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