Whether you’re purchasing a new car or searching for auto insurance, it is vital to understand the main types of coverage included in a policy. Many types of auto insurance policies protect the driver and his passengers in case of an accident.
Truck insurance coverage might be required where you live, while others might be optional. Knowing your state’s regulations and the variety of coverage each offers can help you choose the best policy.
Auto insurance consists of various coverages designed to financially protect you in the event of an accident or damage to your vehicle. While some insurance policies must be carried out, others are optional and offer additional security.
Table of Contents
There are six popular auto insurance policies:
- Vehicle insurance coverage
- Coverage for uninsured and underinsured drivers
- Complete protection
- Collision protection
- Protection against personal injury
Find out below what each of these coverages entails and what each will cover.
In the majority of states, auto liability insurance is vital. Drivers must purchase the bare minimum liability coverage required by state law.
Liability insurance consists of two parts:
- In cases when you are at fault, the bodily insurance plan can help cover the expenses for the other injured person.
- Property damage caused by you while driving – the property damage plan can cover some damage expenses.
Coverage for drivers who lack insurance
If a driver hits you without trucks insurance, uninsured motorist coverage might help pay for your medical costs or, in some cases, automobile repairs. Even if a driver has auto insurance, their liability limitations are likely insufficient to cover your medical expenses if they hit you while underinsured. Underinsured motorist protection can be helpful in these circumstances, depending on the laws in your state of residence.
This type of policy is compulsory in most states, though, in others, it is optional.
If your car sustains damage due to an incident like theft, fire, hail, or vandalism, comprehensive insurance might help. If a covered risk damages your vehicle, comprehensive coverage might help pay for the replacement or repair (up to the vehicle’s real cash value). This policy has a deductible that needs to be satisfied before your insurer will pay for a covered claim.
Although comprehensive insurance is typically optional, your lender may require it if you’re financing or leasing your car.
Collision coverage may assist in paying for the repair or replacement of your automobile (up to its actual cash worth and minus your deductible) if you collide with another car or strike an object, such as a fence. Usually, collision insurance is not required. However, your car’s lender or leaseholder may need it.
Health insurance coverage
Medical payments insurance may assist in covering the costs of any injuries sustained by you, your passengers, or any family members operating the insured vehicle. The health insurance plan might cover surgical procedures, hospital stays, X-rays, and other expenses. Medical payment coverage is required in some states and optional in others while on trucks insurance.
Self-defense against a personal injury
This insurance plan may partially cover your post-accident medical expenses. PIP could also help cover additional costs you incur because of your injuries, such as child care or lost income. This insurance plan is available in some states.