What are the different car insurance types?
All drivers need insurance coverage, but navigating the various types is confusing. Insurance policies cover a variety of risks motorists face. Car insurance types help you make informed decisions when choosing a policy.
Liability insurance is mandatory in most states and essential for covering damages when an at-fault driver causes harm to another person or their property. It is divided into three components:
- Bodily Injury Liability – covers injuries to others when you are at fault
- Property Damage Liability – covers damage you cause to others’ property
- Uninsured/Underinsured Motorist – covers you if injured by a driver with insufficient insurance
Higher limits provide more protection but cost more. Minimum state requirements are often inadequate.
No matter who is at fault, collision coverage protects your vehicle. Auto repair costs must be paid out of pocket without it. As vehicles age, dropping collision makes sense depending on repair costs compared to the car’s value.
What are the thai car insurance types? Comprehensive insurance provides financial protection against vehicle damage from incidents other than collisions. This includes theft, vandalism, weather events like hail or floods, fire, and collisions with animals on the road. A common risk is protected by this option.
Personal Injury Protection
Also called no-fault coverage, personal injury protection helps pay for medical expenses for injuries to you and your passengers, regardless of who caused the accident. Lost wages from accidents are also covered. PIP offers benefits above and beyond what health insurance covers.
Uninsured motorist coverage protects you if injured in a hit-and-run or by a driver with no insurance. Underinsured motorist coverage applies if the at-fault party’s liability limits are insufficient to pay for your damages. Some states mandate this coverage.
Medical Payments Coverage
Medical payments coverage helps pay for hospital bills, rehabilitation, and other medical costs for you and your passengers after an accident, regardless of fault. Providing funds for uncovered co-pays, deductibles, and other expenses, supplements health insurance and PIP.
Roadside Assistance Coverage
The services of roadside assistance cover flat tires, dead batteries, losing your keys, and towing. It’s inexpensive coverage that prevents major headaches if you break down and need immediate assistance.
Rental Reimbursement Coverage
If your vehicle is undrivable due to accident repairs, rental reimbursement helps pay for the cost of a rental car for you to use in the interim. Rental periods are limited, so supplementary rental coverage is needed if repairs take an extended period.
If your vehicle is totaled, standard insurance only pays the depreciated value, leaving vehicle owners with remaining loan balances. Gap insurance helps cover the difference between what is owed and what traditional auto insurance pays out after an accident.