According to Bank Rate, there are 32 million uninsured drivers in the U.S. That’s one in eight cars on the road. Hit one of these drivers, and you can be in a world of financial pain unless you have the right policy.
There are six main types of car insurance that will provide coverage for specific events. If you don’t have car insurance coverage and land up in an accident, you could be liable for a fine (in certain states) or the total costs of damages and medical bills.
There are six main types of car insurance, which are:
Liability Car Insurance
Almost every state in the USA requires you have a liability insurance policy. Liability car insurance policies ensure that you can cover the other party’s medical bills and vehicle repairs if you are liable for the accident.
In New Hampshire and Virginia, you don’t need to have car insurance.
There is no limit to how much car insurance coverage you need. But as a rule of thumb, you don’t want to skip to the cheap auto insurance options. It’s always in your best interest to have a cover.
If you are driving a rental vehicle, you can get a non-owner SR22 Insurance policy to cover the basics. Learn more about it and click here.
Collision Car Insurance
If you are paying off your vehicle, your bank or dealership will stipulate that you take out a collision car insurance policy— also a wise approach if you can pay for surprise repair bills.
What it will cover is if you damage your vehicle in an accident or hit a stationary object and also if you are involved in a single-vehicle accident.
Comprehensive Car Insurance
While you might think this is a different term for “best auto insurance” coverage, it isn’t. This coverage comes into effect if theft occurs or the vehicle is a victim of vandalism or a natural disaster.
Drivers renting, leasing, or paying off a vehicle must carry this coverage by the dealership or third-party financial institutions.
Personal Injury Protection (PIP)
In 12 states, the law requires you to have a PIP. The primary purpose of this insurance policy is to cover extensive medical bills for you and your passengers.
Uninsured or Underinsured Motorist Coverage
As stated before, one in eight road drivers don’t have insurance coverage; for this reason, 20 states require that drivers take it out as coverage.
This is self-explanatory as this policy will cover you for medical bills and vehicle repairs if the other party’s insurance policies don’t cover your needs.
Now You Know The Types Of Car Insurance
It’s always in your best interest to be well covered for all eventualities. But always review all the small print in the contracts you sign.
Also, make sure to take out the insurance policy through a broker who can walk you through the essential details.
And if you’re looking for more financial advice, feel free to browse our website.