Different types of car insurance provide different coverage. Some car insurance is inexpensive but only provides a minimal amount of coverage. Others types of car insurance cost more but provide a greater amount of protection.
While it may be more economical to choose a less expensive insurance coverage type, it may not be the most prudent decision. Likewise, expensive car insurance is not always required. It is possible to pay for more insurance than you require.
Because there are so many different types of car insurance, it is important to understand the differences.
There are six basic types of car insurance.
1) Liability Insurance – The most basic car insurance, liability insurance pays for the victim’s damage if you are responsible for an accident involving another car or people.
2) Collision Insurance – Unlike liability insurance that only protects others and their property from you, collision insurance protects your vehicle as well.
3) Comprehensive Insurance – For accidents and damage unrelated to driving. Comprehensive insurance will cover your vehicle in case of vandalism or hail damage or a tornado or some other situation that does not involve a motor vehicle accident.
4) Medical Payments Coverage – If you or the people inside your vehicle are injured, medical payments coverage will cover the costs.
5) Personal Injury Protection – Not all states offer PIP. But, like medical payments coverage, PIP covers any medical costs you might suffer as the result of an accident.
In addition to medical costs, some personal injury protection will cover costs like lost wages and child expenses.
6) Uninsured and Under-insured Motorist Coverage – In situations where an accident occurs in which you are not at fault, but the driver at fault is uninsured or under-insured, uninsured and under-insured motorist coverage will cover the costs of repairing your vehicle.
Additionally, uninsured and under-insured motorist coverage may cover your medical costs.
While there are other types of auto insurance and coverage, the majority of them fall under the umbrella of the six insurances types and coverage above.
With any questions about car insurance, please call EZ Insurance of Austin Texas. One of our friendly operators will help steer you in the right direction!