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
Covers other people’s expenses after an accident caused by the policyholder.
Repairs or replaces the policyholder’s car if it’s damaged by something other than an accident, like vandalism or a natural disaster.
Pays to repair or replace the policyholder’s car after any accident, regardless of fault.
Covers the policyholder’s repair and medical expenses if they’re hit by a driver without insurance or without sufficient liability limits.
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.
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