Insurance

6 Types of Car Insurance: What You Need in 2022

The six most common types of auto insurance are auto liability coverage, uninsured/underinsured motorist coverage, comprehensive coverage, collision coverage, medical payments, and personal injury protection. . Some of these coverages may be required in your state, while others are only optional. Even if your state doesn’t require a type of coverage, it may still be available to purchase through your insurer.

the six types of car insurance

  • liability: pays other people’s expenses after an accident. required in almost all states.
  • Collision: Pays to repair or replace the policyholder’s car after any accident, regardless of fault. only required for leased or financed cars.
  • comprehensive: Covers damage to the policyholder’s vehicle caused by something other than an accident. only required for leased or financed cars.
  • protection against personal injuries: pays the direct and indirect medical expenses of the insured after an accident. required in 12 states.
  • Uninsured/Underinsured Motorist: Covers vehicle damage and medical expenses after an accident with an uninsured or underinsured driver. required in 20 states.
  • medical payments: pays the insured’s direct medical expenses after an accident. required in two states.
  • civil liability insurance

    what it covers: medical bills from other people and vehicle repairs after accidents caused by you. it does not cover any expenses for you or your passengers.

    Reading: What kind of car insurance coverage should i get

    Who Should Get It: Drivers in almost every state must have liability insurance in order to drive legally.

    collision car insurance

    What is covered: Damage to your own vehicle if you are involved in an accident with another car, hit a stationary object, or have a single car accident.

    See also: How to Become an Insurance Agent – 5 Steps

    Who Should Get It: Drivers with a car loan or lease will need to have collision insurance. You should also get it if you can’t afford to repair or replace your car if it breaks unexpectedly.

    comprehensive car insurance

    What is covered: Damage to your own vehicle caused by something other than an accident, such as vandalism or a natural disaster.

    Who should get it: Drivers with a car loan or lease will need to have comprehensive insurance. You should also get it if you can’t afford to repair or replace your car if it breaks unexpectedly.

    personal injury protection (pip)

    what it covers: medical expenses for you and your passengers after an accident. Qualifying expenses can include traditional medical bills as well as costs not normally covered by health insurance, such as lost income, child care, or even a funeral.

    who should get it: drivers in any of the 12 states where pip is required. even if it’s not required, you should buy pip if it’s available in your state and you can afford it, as it can protect you against high medical bills.

    uninsured/underinsured motorist coverage

    See also: How Pay-Per-Mile Auto Insurance Works – Forbes Advisor

    What is covered: Medical bills and vehicle repairs if you are in an accident caused by an uninsured motorist or a driver who does not have enough liability insurance to cover your expenses.

    Who should get it: Drivers in the 20 states that require uninsured motorist coverage. You should also consider buying it if you don’t have overlapping types of coverage, like collision or pip insurance.

    medical payment coverage (medpay)

    What it covers: Accident-related medical expenses for you, your passengers, your family members and other insureds. It can also cover copays and deductibles for other insurance policies, including health and PIP insurance. this type of hedging is similar to pip but has a more limited scope.

    who should get it: drivers in maine and new hampshire, where required. If MedPay is optional in your state, you must still purchase it to supplement existing health insurance and PIP coverage.

    other types of auto insurance coverage

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