Different Types of Car Insurance Coverage

Car insurance can be crucial for safeguarding both you and your vehicle against financial setbacks caused by accidents or unexpected events. By understanding the various types of available car insurance coverage, you can make well-informed choices and ensure that you have the necessary protection.

Understanding Auto Insurance Coverage Options

The following are the most common types of auto insurance coverage:

• Liability coverage can assist in covering expenses related to injuries and property damage you may cause others in an accident. It typically includes bodily injury liability and property damage liability.
• Collision coverage may cover the costs to repair your vehicle if you’re involved in an accident, such as collisions with other vehicles, single-car accidents, hit-and-run incidents and rollovers, regardless of fault.
• Comprehensive coverage can financially protect your vehicle from noncollision-related incidents, such as theft, vandalism and falling objects. It covers the cost of repairs or replacement minus your deductible. This coverage is essential for financially safeguarding your vehicle against a wide range of potential risks.
• Medical payments coverage (MedPay) can assist with paying for medical expenses resulting from an auto accident, regardless of who is at fault. It can help cover costs such as emergency room visits, surgeries and rehabilitation. However, MedPay typically does not cover lost wages or other nonmedical expenses.
• Uninsured/underinsured motorist coverage can offer financial protection if you’re in an accident with a driver who lacks insurance or has insufficient coverage.
• GAP insurance is a valuable coverage option for those who have financed or leased their vehicle. In the unfortunate event that your car is totaled or stolen, the insurance payout based on the vehicle’s actual cash value may not be enough to cover the remaining balance on your loan or lease. This is where GAP insurance comes in—it bridges the “gap” between the car’s depreciated value and the amount you still owe.

Learn More

For auto insurance near you, contact ABC Insurance Services.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.