What Types of Car Insurance Are There?

By Mike Anderson Posted in Car Insurance News

Liability Insurance

Liability insurance pays for damage to another vehicle or a person’s property following a collision between two or more cars. This area of insurance covers:

1. Bodily injury
2. Collision coverage
3. Medical payments
4. Property damage
5. Uninsured/underinsured motorist

Bodily injury insurance protects you against lawsuits after a car accident that is your fault. It covers anyone driving or riding in the other cars in your accident. Items bodily injury covers including medical bills for the others, their lost income following the accident and any legal cases against you for personal damages including pain and suffering.
Collision coverage pays off the damages to your car and other cars in the accident. Again, it only pays for other cars if the accident is your fault. If you were not the cause, the at-fault driver’s insurance company would have to pay you.
Medical payment coverage pays for any medical bills you or passengers in your car incur following the accident. This includes hospitalization, follow-up care and ER treatments.

Property damage coverage pays for damage to someone’s property during the accident. This might be as easy as replacing a mailbox to something more expensive like replacing an entire section of hedge or chain link fence. It also covers things like hitting someone’s house or deck with your car during the accident.
Uninsured or underinsured driver coverage protects you from financial loss if the other driver lacks enough insurance coverage to pay for damages caused during an accident that was their fault. It also covers hit and run accidents.

Comprehensive Auto Insurance

Comprehensive auto insurance covers damages to your car that is caused by accidents with things rather than other vehicles. Comprehensive coverage protects you against things like hitting an animal that runs out in the road, cracked windshields from hail, weather-related damage or other non-vehicular damage.

Additional Insurance Options

In addition to liability and comprehensive insurance, there are optional policies that may be worthwhile. They include:
· Accidental Death and Dismemberment: Protects you and your passengers from financial loss following a serious accident
· GAP: Pays off your loan or lease if the car is totaled
· Property Protection: Provides coverage if you hit a parked car, building or lamppost (Required coverage in the state of Michigan)
· Rental Car: Pays for a rental while your car is in the shop
· Towing and Labor: Covers towing expenses following an accident

Related posts:

  1. What Is Car Insurance?
  2. Which Parts Of A Car Insurance Policy Are Not Required By State Laws?
  3. New Minimum Michigan State Requirements For Ann Arbor Car Insurance
  4. New Minimum Louisiana State Requirements For Baton Rouge Car Insurance
  5. What Are The Minimum State California Auto Insurance Laws?

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