Various Types of Auto Insurance Coverage You Need to Know

Life is full of uncertainty! You will never know what would happen to your lovely car. It is better to have coverage in case anything disastrous happens to your vehicle. While purchasing insurance coverage for your car, you come across various types of insurance coverage. But don't get confused with those alluring schemes. Just purchase that coverage which you need the most. Below are discussed some of the insurance coverage:

1. Liability Insurance:

Liability insurance is applicable only when people meet an accident because of your mistake. It is included if you get any personal injuries. In order to legally drive a vehicle every state requires a minimum amount of liability coverage. Liability insurance covers you when driving any vehicle you own, or if you drive someone else’s car with their permission.

2. Uninsured and Underinsured Driver Coverage

Other names for these types of insurance are Underinsured Motorist Coverage (UIM) and Uninsured Motorist Coverage (UM). It pays for expenses if someone hits you who does not have auto insurance policy. It covers your medical expenses if the person who caused the accident has too small coverage to cover the expenses.

3. Coverage against Collision

It applies when your vehicle is involved in any kind of collision. But if you do not have the collision coverage, then you will be responsible for the cost of repairs. If the accident is caused by the other party, then the cost will be paid by their insurance company.

4. Comprehensive Coverage

This is the insurance coverage that pays for damage to your car caused by something other than another vehicle. For example, this includes theft, vandalism, hitting a deer or other animal, storms and certain natural disasters. You will have to pay a deductible after which comprehensive coverage picks up the rest of the cost. If you choose higher deductible, you will get lower premium.

5. Personal Injury Protection (PIP)

It is also known as “no-fault insurance” and is available in certain states and pays medical expenses, and in some cases lost wages and other damages regardless of who is at fault in an accident. This type of coverage is mandatory in 16 states. It also covers you and anyone else named on your policy when driving someone else’s vehicle.

These are some of the common auto insurance coverage’s that auto insurance companies offer and you need know before going for purchasing.

Via: Cheap Car Insurance California