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What Are The Types Of Car Insurance Available In The USA?

by Bobby MooreOctober 7, 2021,
What Are The Types Of Car Insurance Available In The USA?

Car insurance is a must-have in the United States. It’s required by law and can protect you from financial loss if your vehicle is involved in an accident.

Six common types of car insurance coverage that can be purchased are auto liability, uninsured and underinsured motorist, comprehensive, collision, medical payments, and personal injury protection. Depending on where you live, some of these coverages may be mandatory or optional, and their prices and quotes may variate as well.

Here’s what you need to know about the most common types of car insurance coverage options available in the USA today.

Auto Liability

Auto liability provides coverage if your vehicle injures another driver or their passengers (including pedestrians) or causes an accident that results in damage to someone else’s vehicle. This kind of policy also protects you from claims against your car if it gets damaged by something like fire, theft, vandalism, hail storms, and more.

Uninsured And Underinsured Motorist

This coverage protects you if you get into a collision with someone who doesn’t have any insurance or not enough to pay for your medical bills. It also covers damage to your vehicle caused by hit-and-run drivers when they cannot be found. UM/UIM coverage is usually inexpensive, but it can save thousands of dollars in medical costs.

Comprehensive

Comprehensive insurance is the type of coverage that helps pay to replace or repair your vehicle if it's stolen or damaged in an incident that's not a collision. It typically covers fire, vandalism, falling objects (like hail), and other events.

Collision

Collision is one type that helps pay to repair or replace your vehicle if it's damaged in an accident with another vehicle or object, such as a fence or tree. If you're leasing or financing your car, collision coverage is typically required by the lender.

Medical Payments

Medical Payments is one type that covers medical expenses for you or your passengers if you get into an accident. It can be a great way to protect yourself from unexpected costs after an accident.

Personal Injury Protection

Personal Injury Protection (PIP) is one type of coverage that can be very beneficial to drivers who have been injured in an accident. This type of policy pays out benefits regardless if the driver was at fault or not. This makes it a great option for those injured in an accident but was not responsible for causing it.

It’s important to have car insurance and understand what kind of protection you need before purchasing a policy. Each state has its regulations regarding coverages that must be included with every plan purchased within its borders. 

To learn more about car insurance policies, visit Lakeville Motors’ blog section.

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