Understanding The Basic Types Of Auto Insurance Coverage

Purchasing your first car on your own is an exciting event. However, when you buy a car, you will also need to buy auto insurance. If you are new to purchasing auto insurance, you might have no idea what types of coverage to choose, yet you will need to make sure you get the right types. To help you with this, here is a breakdown of the basic types of coverage you can choose when buying a policy.

Liability

A basic type of coverage included with any type of car insurance policy is liability coverage. Liability coverage does not really give you any protection over your own vehicle; instead, it provides coverage to other people if you cause an accident that damages their cars.

Collision

If you want protection for your own car in the event that you cause an accident that leaves your own vehicle needing repairs, you need to purchase collision coverage. Collision is designed for this purpose alone, and it is a type of coverage that is very helpful to have if you have an accident that is your fault.

Comprehensive

A second type of coverage you need for your own protection is called comprehensive coverage. This type is designed for damage to your own vehicle that is the result of theft or vandalism storms or animal accidents.

Uninsured and underinsured

Most basic policies also include uninsured and underinsured motorist coverages, and these types also protect you. If your car incurs damage from an accident caused by a driver who lacks insurance or who does not have enough insurance, your own policy would provide you with compensation for the repairs your car needs.

Bodily injury

Another type of coverage that protects other drivers is called bodily injury coverage, which is basically the coverage you would need if you cause an accident that leaves people injured.

Medical payments

Finally, you can have medical payment coverage on your auto insurance policy, which is a type of coverage designed to pay for medical bills you encounter for yourself or anyone riding in your car when an accident occurs that you cause.

As you read through this list, you can determine what types you would like to have, and you can call an auto insurance agent to ask for a free quote for car insurance coverage. As you choose a policy, you will need to make sure it at least meets the minimum standards in the state where you live.