On average, there are 6 million car accidents in the United States each year. Out of these accidents, 3 million people are injured with 2 million of those people experiencing permanent injuries.
This goes to show that car accidents are common and can hurt physically and financially. To protect yourself and others while on the road, it’s important to have auto insurance.
Keep reading to learn the different types of vehicle insurance and what they cover.
Liability Car Insurance
Liability insurance is one of the most common types of vehicle insurance that drivers in every state are required to have. If you cause an accident, your liability car insurance plan will cover vehicle repairs and other people’s medical bills.
You’ll need additional car insurance to cover expenses for you or your passengers that were injured in an accident.
Businesses with company vehicles will also need liability auto insurance. You can find different plans and quotes at InsuranceHub.
Collision Car Insurance
Drivers in most states who have a lease or car loan are also required to have collision insurance. Those who can’t afford to replace or repair their car after unexpected damage can also benefit from this coverage.
Damage to your vehicle after an accident with another car or a single-car accident is covered with collision coverage. It also covers costs if you hit a stationary object.
Comprehensive Car Insurance
Those with a car lease or car loan also must carry comprehensive insurance. This insurance will cover damage to a car caused by something other than an accident like a natural disaster or vandalism.
Personal Injury Protection (PIP)
Few states require a driver to have personal injury protection (PIP) coverage. However, if it is available in your state and not required, you’ll want it to protect you from large medical bills.
PIP covers medical expenses for you and passengers in your vehicle after an accident. Traditional medical bills and other costs not covered by health insurance (funeral, lost income, child care, etc.) are qualifying expenses.
Uninsured/Underinsured Motorist Coverage
An accident caused by an uninsured motorist is even tougher to handle if you don’t have uninsured/underinsured motorist coverage. Car insurance requirements in around 20 states include this coverage plan.
Liability insurance can cover some of these costs or all of them if you have enough. If you don’t have enough liability insurance and fear this possibility, purchase this coverage plan.
Guaranteed Auto Protection
The last of the types of vehicle insurance we will cover is guaranteed auto protection. This protection covers the gap between what your auto insurer pays and the balance of financing.
In simple terms, you’ll end up getting the amount that your car was worth before depreciation.
Which Types of Vehicle Insurance Do You Need?
Although there are more types of vehicle insurance plans, these are the most common that you’ll come across. Depending on the state you are in, you’ll have different requirements as a driver.
Chances are, you’ll need more than one type of vehicle insurance to cover possible costs after an accident. Find an insurance provider that can bundle plans together to lower your costs.
Looking for more articles like this? Check out the other posts on our blog.