The best type of car insurance is a full coverage insurance policy from one of the top auto insurers, like Geico, Progressive, or USAA. With full coverage, any damage to your vehicle will be covered, along with your liability for other people’s property damage or medical bills if you cause an accident. Medical expenses for you and your passengers may also be covered if personal injury protection or medical payments coverage is required in your state.
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 insurance pays for any damage that you cause to someone’s property, and bodily injury liability insurance pays for their medical bills.
Liability coverage is the most common type of car insurance. It is required in almost every state.
2. Comprehensive insurance
Comprehensive car insurance pays to repair or replace your vehicle when it is damaged by something other than an accident, such as vandalism or a natural disaster. It is not required in any state, but it is usually mandatory for vehicles that are leased or financed.
3. Collision insurance
Collision insurance is a type of car insurance that covers damage to your vehicle that is caused by an accident, regardless of who was at fault. It is not required in any state, but it’s usually mandatory for vehicles that are leased or financed.
Other Types of Car Insurance
In addition to the 3 major types of car insurance – liability, collision and comprehensive – there are several other types of coverage that are less frequently required but still helpful in the right situation, including:
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 types of insurance you include. For example, full coverage won’t pay for your medical bills after an accident if you don’t purchase PIP or MedPay.… read full answer
So, even though liability and full coverage are the two main types of car insurance policies, there are still several specific types of car insurance that drivers can purchase.
In some cases, you may not have the ability to choose between liability-only and full coverage insurance. If your state requires you to have coverage in addition to liability insurance, then a liability-only policy is not an option for you. Additionally, if your car is leased or financed, your lender or lessor may require you to purchase full coverage.
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