What are Different Types of Auto Insurance Coverage?

Auto insurers offer many types of auto insurance coverage options. Let’s examine a few of the most popular types of auto insurance to determine the best combination for you.

Liability

If you cause an accident, liability insurance protects the other party involved. It includes both bodily injury and property damage. Most states require drivers to have liability auto insurance, at a minimum.

Collision

Collision pays for repairs or replacements to an automobile in the event of an accident. If you want to keep your insurance premium low but still have sound coverage, consider raising your collision deductible. A deductible is the amount you must pay out-of-pocket before the insurer steps in to cover the remainder.

Comprehensive

This insurance coverage includes non-collision damages to your automobile, such as theft, fire, vandalism, or storm damage.

Uninsured Motorist

While the law requires all drivers to purchase auto insurance, not all do. If you are involved in an accident with an uninsured or underinsured driver, this coverage pays for damages that they cannot pay.

Roadside Assistance

This coverage pays towing expenses in the event of a flat tire, breakdown, dead battery, or other mishap. Of all the types of auto insurance listed above, roadside assistance is probably the least essential. It is a helpful coverage option, however, for drivers who take long road trips or often travel to unknown locations.

 

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