The main types of insurance that cover damage to your car are collision and comprehensive insurance. Collision insurance repairs or replaces your car when it’s damaged in an accident, while comprehensive insurance applies to damage caused by something other than a wreck, like vandalism or a natural disaster. Uninsured/underinsured motorist coverage can also cover damage to your car, but only in certain situations and states.
Types of Insurance that Cover Damage to Your Car
Uninsured/underinsured motorist insurance (in some states)
When purchased with liability insurance and any other state-mandated coverage, collision and comprehensive insurance make a full coverage policy. There are no state laws that require drivers to purchase collision or comprehensive coverage, but most lenders and lessors require both types of insurance for leased or financed vehicles. Even if you’re not required to have collision and comprehensive insurance, they’re usually a good investment, since they protect you from paying out of pocket for expensive vehicle repairs.
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:
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