You may already know how auto insurance works, but do you know what the different types of car insurance are? If you’re shopping for auto coverage, knowing the different types of auto insurance and their coverages is an important step in getting the policy that’s right for you. Here are a few of the basic car insurance types, how they work and what they cover.
Liability coverage:
Liability coverage is required in most US states as a legal requirement to drive a car. Liability insurance may help cover damages for injuries and property damage to others for which you become legally responsible resulting from a covered accident.
Collision insurance:
Collision insurance may cover damage to your car after an accident involving another vehicle and may help to repair or replace a covered vehicle.
Uninsured motorist insurance:
Uninsured motorist insurance can protect you and your car against uninsured drivers and hit-and-run accidents
Medical payments coverage:
Medical costs following an accident can be very expensive. Medical payments coverage can help pay medical costs related to a covered accident, regardless of who is at fault.
Rental reimbursement insurance:
Figuring out how to get around after an accident can be expensive. Rental reimbursement insurance helps pay for a rental car if your vehicle cannot be driven after an accident.
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