What Are the Different Types of Auto Insurance Policies?
Auto insurance policies come in several types, each offering different levels of coverage to protect drivers and their vehicles. Robert O. Mable Agency provides auto insurance in Hobart, Oneonta, Margaretville, NY, Walton, Andes, NY, Delhi, NY and surrounding areas.
This is a rundown of the main types:
Liability Insurance: This is the most basic form of auto insurance, and it’s required in most places. It covers damages and injuries you cause to others in an accident. It has two components:
Bodily Injury Liability: Covers medical expenses and lost wages for other drivers and passengers injured in an accident you caused.
Property Damage Liability: Covers repair or replacement costs for other people’s property damaged in an accident you caused.
Collision Coverage: This insurance covers damage to your own vehicle after an accident, regardless of who is at fault. It pays for repairs or the replacement of your car if it’s totaled.
Comprehensive Coverage: This provides protection against non-collision-related incidents such as theft, vandalism, natural disasters, or hitting an animal. It also covers damage to your car from events other than collisions.
Personal Injury Protection (PIP): Also known as no-fault insurance, PIP covers medical expenses, lost wages, and other costs for you and your passengers, regardless of who caused the accident. It’s required in some states and optional in others.
Uninsured/Underinsured Motorist Coverage: This protects you if you’re in an accident with a driver who doesn’t have insurance or has insufficient coverage. It can cover medical expenses, lost wages, and sometimes even property damage.
Medical Payments Coverage (MedPay): Similar to PIP, MedPay covers medical expenses for you and your passengers after an accident, regardless of fault. It tends to have a lower coverage limit compared to PIP.
Gap Insurance: This is useful if you owe more on your car loan or lease than the car’s current value. It covers the difference between the amount you owe and the car’s actual cash value in the event of a total loss.
Roadside Assistance: This optional coverage provides help if your car breaks down, including services like towing, battery jumps, or flat tire changes.
Each type of coverage serves a specific purpose and can be combined to tailor a policy that fits your needs and legal requirements. If you need assistance, we’re just a phone call away.
