Are you planning to get an auto insurance quote in the near future? If so, it is important that you have a good understanding of the different types of auto insurance coverage which may be included in this quote. This will help to ensure that you ultimately purchase a policy which best meets your specific coverage needs.
There are three main types of auto insurance coverage that you can purchase. These three coverage types are:
- Liability Coverage
- Collision & Comprehensive Coverage (Also Called Full-Coverage)
- Uninsured & Underinsured Motorist Coverage
Each of these different coverage options will provide financial protection in a different set of circumstances. Continue reading to learn more about the perils that are covered by each of these types of auto insurance.
Liability Coverage
Liability coverage is often required by law for all vehicles that are currently on the road. This is because liability coverage does not protect your own vehicle, but rather protects other drivers in the event your vehicle is responsible for causing an accident. If you are found liable for causing an accident, your liability coverage will take care of paying for the damage to the other driver's vehicle and for any medical bills resulting from injuries to the other driver or passengers. Purchasing an auto insurance policy that offers only liability coverage will not result in any payments being made directly to you in the event of an accident.
Comprehensive & Collision Coverage
Many people refer to comprehensive and collision coverage as full coverage auto insurance. However, while there are many perils that are covered under this type of insurance, it is important not to get confused. The term full coverage insurance does not mean that every imaginable situation will be covered by this type of insurance. Instead, you can count on your comprehensive and collision coverage to cover the cost of damages to your own vehicle if you are ever found liable for causing an accident. This coverage also typically includes coverage for repairs to your auto glass, and will cover the cost of replacing your vehicle if it is ever stolen and cannot be recovered by law enforcement. Oftentimes auto loan lenders will require you to purchase this type of coverage until you have paid off your loan.
Uninsured And Underinsured Motorist Coverage
If your vehicle is ever damaged as the result of a hit and run accident or if the liable driver does not have insurance coverage, you will be able to collect money to cover any accident related damages through uninsured and underinsured motorist coverage. This type of auto insurance will also provide supplemental coverage in the event that not all damages can be covered by the other driver due to an inadequate amount of insurance coverage.
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