Driving is a big financial responsibility. You cannot be out on the road without the ability to pay for damages you cause, either to your car, someone else’s car, or private property. Not very many of us have that kind of cash on hand, which is why there is car insurance instead.
What you may not realize is that there are different types of insurance. Not everyone’s auto coverage is the same, because people have different requirements, wants, and needs. Which type or types of coverage is right for you?
The 5 Types of Auto Insurance
Insurance coverage varies based on how you bought your car and how much coverage you need. The five basic types of car insurance are:
Liability
When you think of auto insurance, this is what you’re probably imagining. Liability insurance pays for other people’s expenses after an accident. It is required in nearly every state because it is the foundation of auto insurance.
Collision
Collision insurance pays to repair or replace the policyholder’s car after any accident, regardless of fault. Collision coverage will pay for the repairs to your car, whereas liability pays for someone else’s repairs. If your car is totaled, meaning the cost to repair it exceeds the value of the vehicle, collision coverage will pay the value of your car. This type of insurance is more to add to a policy and it’s only required for leased or financed cars. That being said, if you want the most coverage possible you can always opt for it.
Comprehensive
This type of auto insurance covers damage to the policyholder’s vehicle caused by something other than an accident. This could be something like theft, vandalism, hail, or accidentally hitting a large animal. Again, comprehensive coverage is only required for leased or financed cars.
Personal Injury Protection/Medical Payments Insurance/MedPay
Personal Injury Protection (PIP) pays for your direct and indirect medical expenses after an accident. It is only required in 12 states. PIP is not required in California. In fact, it is not even available in California. Instead, California drivers can opt for medical payments insurance, which is also sometimes called MedPay. This helps with the hospital bills resulting from a car accident.
Uninsured/Underinsured Motorist
For a variety of reasons, not all drivers have auto insurance despite the fact that it is a legal requirement. This type of insurance covers vehicle damage and medical expenses after an accident with an uninsured or possibly underinsured driver. It is required in 20 states, including here in California.
Even if a type of coverage is not required by California, it may still be a good idea to add on to your policy in order to have the most protection possible. Reach out to Pronto Insurance and we’ll go over all of the possibilities with you. Because our prices are so affordable, you may be able to get more coverage than you realize!
