Car insurance is one thing which can make you feel overwhelmed. There are a lot of different car insurances types, and some of these amounts are required by the state. If you are still confused, one of the easiest ways to understand car insurance coverage is by understanding them. In this article, we will be discussing some of the most common types of car insurance.
Liability is when you are legally responsible for something. Liability car insurance is when there is a car accident which is by your fault. The liability insurance can be further divided into bodily damage and damage to property.
- Bodily injury liability: When an accident has occurred over your mistake, the bodily liability will extend a helping hand when it comes to medical expenses. This will allow you to have the right medical treatment to help you with the pain and suffering. This coverage also can be extended to anyone on the driver seat.
- Property damage liability: This is one which helps you cover the damage caused to any person’s property due to a collision. It typically covers cars, fences, buildings, mailboxes or lamp posts. Note that the property damage liability does not cover the damage to your property but covers the damage to other’s property.
Uninsured and Underinsured Motorist Coverage
This is a coverage which one can be deemed liable when the collision is the responsibility of another person. If you have a designated driver or a family member who gets hit by the collision. This is insurance for medical costs as well as property damage.
In addition to the required liability insurance, you will have to make sure that you understand the optional coverage. These coverages are not mandated by the law and can be determined by the law allowing you to have the right amount of coverage.
- Collision: This is one coverage which will allow you to be covered when you are out to fix your car. It also covers the damage to the potholes. Note that this insurance does not cover mechanical failure or the ageing of your car.
- Comprehensive: This is for any type of damage which does not relate to a collision. It includes things like fires, missiles, earthquakes, floods, vandalism, hitting objects or falling objects, etc. You can also ask for added comprehensive, which can allow you to have the right help when needed.
Other optional coverages
- Medical payment coverage: This is a coverage which is a treatment for the injuries for you and others.
- Personal Injury Protection: This covers you family and anyone riding the car which occurred with no fault of yours.
- Excess medical payments: This is a coverage which pays for things that is not covered by the PIP.