The Six Types of Auto Insurance - All about the Types of Auto Insurance

Most people who buy auto insurance do not give it much thought except for understanding what the state laws are and picking the deductible amount. What folks do not take into account is that understanding the various types of insurance can go a long way in reducing the amount of insurance that you pay for your car.
The other thing that a knowledge of the various types of auto insurance can also help you understand whether you are underinsured in any of the areas; knowledge that can be of great value to any motorist.
Areas Where you Need High Coverage
Property Damage Liability and Bodily Injury Liability are the two areas of auto insurance where you need high coverage. Property Damage Liability covers the cost of damage to another vehicle in an accident where you are seen to be legally responsible. With the high cost of vehicles and the spiraling cost of auto repair, it is mandatory for motorists to have adequate cover in this sphere. The same holds true in the case of Bodily Damage Liability because of the steep costs of medical treatment. This type of auto insurance also covers the cost of legal fees in the case of a legal suit.
Subsidiary Areas of Auto Insurance
Some types of auto insurance like Medical Payment and Uninsured Motorist Coverage vary from state to state. Medical Payment is used to bear the cost of medical treatment for the passengers in your car during an accident, irrespective of who is at fault. States that have a No-Fault law do not require this cover because the No-Fault law just covers the cost of medical payment. Uninsured Motorist Coverage is also optional in several states. This cover protects you and the passengers in your car in the event of an accident involving an uninsured motorist.
Collision Coverage
Collision Coverage is generally mandatory on vehicles that come with a loan. The kind of car that is being insured is of importance while buying this type of insurance. Drivers of older cars can usually skip this variety of insurance.
Comprehensive Coverage
The last type of auto insurance coverage is Comprehensive Coverage. This type of coverage pays for all manner of damage, such as theft, natural disasters, vandalism and accidents involving animals. Some lenders require motorists to purchase Comprehensive Coverage for vehicles that have a loan.

Auto Insurance for Teenaged Drivers »

f you have a teenaged son or daughter who has just begun to drive, chances are that your auto insurance rate has just gone spiraling up and is leaving you gasping for breath. What you may not be aware of is that there are ways to reduce insurance costs at least by some amount if you know how to go about it.

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Driving

All about the Types of Auto Insurance »

Most people who buy auto insurance do not give it much thought except for understanding what the state laws are and picking the deductible amount. What folks do not take into account is that understanding the various types of insurance can go a long way in reducing the amount of insurance that you pay for your car.

Learn More
Driving