Introduction
Knowing the different types of auto insurance that are available is very important since it will help you determine the insurance policy that is perfectly suitable for you. In this article, we will briefly go through the 5 main types of auto insurance.
Various types of auto insurance
• Comprehensive coverage
This is a type of insurance coverage that assists you to pay for repair or replacement of your car in case it is damaged in an accident that does not involve collision or if it was stolen. These accidents ay involve vandalism, falling objects or fire. This auto insurance coverage is mostly optional.
• Collision coverage
This type of insurance provides coverage to the physical damage that the car sustains from an accident that involves colliding with another car or any other object. This insurance policy is necessary for compensation of auto related accidents by the insurance company.
• Bodily injury coverage
This type of insurance policy provides coverage for any injuries sustained by other people as a result of a car accident that occurred due to your fault. This type of insurance is also very useful in providing legal defense if you are sued in a court of law for damages arising from the car accident.
• Liability coverage
This refers to an insurance policy that provides coverage to other people’s property damaged and death or bodily injuries experienced by other people due to an accident that occurred as a result of your mistake. This type of car insurance coverage is mandated in most states of the US. Property damage and bodily injury liability coverage are the two types of policies are found within this type of insurance.
• Uninsured motorist coverage
This is a type of insurance coverage that protects you and your car from bodily injury and physical damage respectively from an accident that was caused by another motorist who don’t have any insurance cover.
Conclusion
There are other types of insurance coverage but those are the five common ones in auto insurance. As we previously stated, familiarizing with each one of them will help you determine the best insurance policy to purchase for your car.