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The five types of car insurance are liability, comprehensive, collision, uninsured/underinsured motorist, and personal injury protection/medical payments. These are the most common types of car insurance, though many insurance companies sell other types of coverage as well, like gap insurance and rental reimbursement.
5 Types of Car Insurance
Liability
Covers other people’s expenses after an accident caused by the policyholder.
Comprehensive
Repairs or replaces the policyholder’s car if it’s damaged by something other than an accident, like vandalism or a natural disaster.
Collision
Pays to repair or replace the policyholder’s car after any accident, regardless of fault.
Uninsured/underinsured motorist
Covers the policyholder’s repair and medical expenses if they’re hit by a driver without insurance or without sufficient liability limits.
Personal injury protection (PIP) and medical payments (MedPay)
Cover the policyholder’s medical expenses after an accident, regardless of fault.
Liability insurance is required in nearly every state, and some states also require additional coverage like PIP and uninsured/underinsured motorist insurance. There are no states that require comprehensive or collision insurance, but those types of insurance are usually mandatory for vehicles that are leased or financed.
To learn more, check out WalletHub’s guide to the different types of car insurance.
People also ask
What is comprehensive insurance?
Comprehensive insurance is coverage that helps pay for the cost of damage to your vehicle when you're involved in an accident not caused by a collision. Comprehensive car insurance covers losses from things like theft, vandalism or extreme weather events.
Comprehensive coverage is never required by state law, but it is usually needed for cars that are leased or financed.
What Comprehensive Insurance Covers
read full answerWhat are the 3 types of car insurance?
The three types of car insurance that are universally offered are liability, comprehensive, and collision insurance. Drivers can still purchase other types of auto insurance coverage, like personal injury protection and uninsured/underinsured motorist, but they are not available in every state.
3 Major Types of Car Insurance Explained
1. Liability insurance
Liability car insurance is coverage that pays for other people’s expenses after accidents that you cause, and there are two components of it. Property damage liability...
read full answerWhat are the 2 main types of car insurance?
The two main types of car insurance policies are liability-only and full coverage. While liability-only policies just have bodily injury and property damage liability insurance, full coverage includes comprehensive and collision insurance in addition to state-minimum coverage.
In other words, a liability-only insurance policy will only pay for other people’s property damage or injuries after accidents that you cause, while a full coverage policy can cover your own vehicle repairs and medical expenses, depending on the particular...
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