Protecting Your Beloved Possessions

Understanding the Different Types of Auto Insurance You Need

Auto insurance is a necessary expense for any car owner. It provides financial protection in case of accidents, theft, or other types of damage to your vehicle. However, not all auto insurance policies are created equal. It's important to understand the different types of coverage available and determine which ones you need to ensure proper protection for yourself and your vehicle. 

Liability Insurance

Liability insurance is typically required by law in most states. This type of coverage protects you if you are at fault for an accident that causes injury or property damage to another person. It includes two types of coverage: bodily injury liability and property damage liability. Bodily injury liability covers medical expenses and lost wages for the other party involved in the accident, while property damage liability covers repairs or replacement costs for their damaged property.

Collision Coverage

Collision coverage is optional but highly recommended for car owners. It covers damages to your own vehicle in case of a collision with another car or object, regardless of who is at fault. This type of insurance also applies if your car is damaged by hitting a pothole or being hit by an uninsured driver.

Comprehensive Coverage

Comprehensive coverage protects against damages not caused by a collision, such as theft, vandalism, natural disasters, and falling objects. This type of insurance also covers damages from hitting an animal on the road. While comprehensive coverage is not required by law, it may be mandatory if you have a loan or lease on your vehicle.

Personal Injury Protection (PIP)

Personal Injury Protection (PIP) is similar to bodily injury liability but covers medical expenses and lost wages for both parties involved in an accident. PIP also covers funeral expenses and any necessary household services if you cannot perform them due to injuries sustained in the accident.

Uninsured/Underinsured Motorist Coverage

Unfortunately, not all drivers have proper auto insurance coverage. In case of an accident with an uninsured or underinsured driver, this type of coverage will protect you and your vehicle. It covers medical expenses and property damage for you and your passengers if the other party is unable to pay for damages.

Having the right types of auto insurance coverage can save you from financial ruin in case of an accident. Liability insurance is typically mandatory, but it's important to consider additional coverage options like collision, comprehensive, PIP, and uninsured/underinsured motorist coverage for added protection. It's also crucial to review your policy regularly and make any necessary updates to ensure you always have adequate coverage. 

Contact a company like IMS Insurance to learn more.