List of Car Insurance

The list of car insurance coverage that you can buy is quite long, but it’s very important that you know what kind of insurance there is out there so you can be an educated consumer when shopping for insurance.

Liability insurance is the type of car insurance coverage that no driver or car owner should find him- or herself without. Depending on where you live, liability insurance is usually required by law, so not having any will lead to extra legal problems for you, instead of just potentially owing a lot of money. Liability insurance pays for any property damage or physical injuries caused to another person by your car. If you drive into another car or even through another person’s house, liability insurance will cover to repair the damage after you pay your deductible. In other words, if you end up in an accident and it’s determined that the accident is your fault, then liability insurance will cover you.

Buying extra medical car insurance might not be a bad idea, although it will add to your monthly bill. If your liability insurance doesn’t have very high maximum, extra medical car insurance will pay the medical expenses of anyone injured as a result of an accident in your car. Medical car insurance will protect you, the passengers, or anyone outside of your car who you injure.

Similar, but less expensive, is personal injury insurance. Personal injury insurance is a type of extra car insurance that you can buy that will pay for your medical bills if you are injured in an accident. However, it will not cover your passengers or anyone else. Still, if you are injured in a car accident, if your liability insurance doesn’t pay all your medical bills, having personal injury insurance could protect your financial future.

Another common type of car insurance you can purchase is collision coverage. Collision insurance pays for any damage you cause to your car if you hit something or someone. Keep in mind, though, that this only pays for your car—not the other person’s car or property. If you have a very old car or a car that is not in very good condition, you might decide that paying for collision insurance is just not worth the cost for you.

Comprehensive car insurance is similar to collision insurance in that you are covered if your car is damaged. However, instead of damage that is caused by a car accident, it covers other types of damage. For example, if a tree branch falls through your windshield or there is some other type of damage from a natural disaster like a flood or an earthquake, comprehensive car insurance will pay to repair your car. Also just like collision coverage, if you have a very old car or a car that is already in bad shape, it might not be worth it to you to pay extra money every month for comprehensive car insurance.

Another type of car insurance you might consider buying is uninsured motorist insurance. This type of insurance protects you if your car is hit by another driver who doesn’t have any car insurance or doesn’t have enough car insurance to pay the full amount of the damages. Your insurance will pay the difference between what the other person’s insurance pays and what it really costs to fix the damage done to your car.

As you can see, there is a long list of car insurance coverage that you can buy, but knowing what each of them is will make you better prepared when you are researching car insurance quotes.