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What are the most common types of Auto Insurance?

What are the most common types of Auto Insurance?

Auto insurance is an agreement between the car owner and an insurance company that provides property damage to the insured car or any other vehicle or property. It also pays for personal injury and medical expenses of anyone injured in an accident with the vehicle owner. Auto insurance helps protect your financial future, saves money on medical bills, and covers other road users in case of an accident. Here are some of the common types of auto insurance that are available.

1. Liability Coverage

This coverage insures your car against third-party liability. This coverage protects the driver, passengers, or any third party injured in an accident caused by your car, including passengers in another vehicle. Liability insurance covers the medical expenses of anyone injured in an accident with the vehicle owner. Liability coverage is an essential kind of auto insurance since it protects financial losses to people injured or whose property was damaged due to an auto accident. It is one of the most common types of auto insurance because it is a mandatory requirement in all states once you buy a vehicle.

2. Comprehensive Coverage

This coverage protects your vehicle against damage caused by events other than collision, such as fire, vandalism, or harsh weather conditions. It also covers theft of your vehicle and any robbery of items in the vehicle. Comprehensive coverage also pays to repair or replace parts on your vehicle. This covers any damages above the insurance policy’s limits and helps pay for repairing or replacing damaged parts of your vehicle.

3. Collision Coverage

This coverage protects your vehicle against damage caused by other drivers or their passengers when they hit your vehicle. It does not cover damage caused by hitting a tree or pole, or any other object out of the way.

4. Personal Injury Protection

This coverage protects the vehicle owner in case of personal injury. This coverage covers medical expenses and lost earnings if the car owner is injured in an auto accident. This kind of insurance also pays for any death benefits to a dependent if the injured insurance owner dies, and it covers any funeral expenses.

5. Uninsured Motorist Coverage

This coverage protects the car owner in case of an accident with another driver who does not have auto insurance. It may also cover vehicle owners who are hit by a driver who does not have liability insurance. This protection of uninsured motorists coverage helps pay medical expenses and property damage for the insured car in case of an accident with an uninsured driver or a hit-and-run driver. It is available as either no-fault or fault coverage, depending on the state in which you live.

6. Medical Payments Coverage

This coverage protects the vehicle owner from any medical costs due to an auto accident. It covers medical bills, hospital services, physical therapy, ambulance rides, and doctor visits. This kind of coverage protects your financial future in case of an injury or illness resulting from an auto accident by paying all the medical expenses that may arise due to the accident.

Auto insurance protects you and your financial future from the expenses following an auto accident. It can help to pay for medical bills, car repairs, and lost wages in case of an injury or illness. We hope you were better able to understand the common types of auto insurance, and feel more comfortable picking the best option for you and your family.

To learn more about Auto Insurance, check out our previous Auto Insurance Blog Here

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