What type of insurance covers damage to your car?

Question

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

1. Liability insurance… read full answer

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:

Personal Injury Protection (PIP): Pays for several different medical-related expenses after an accident, including loss of income and child care.

Medical Payments (MedPay) Coverage: Covers medical bills after an accident.

Uninsured/Underinsured Motorist Insurance: Pays for your vehicle repairs and medical bills if you are involved in an accident with someone who doesn’t have enough insurance coverage.

To learn more, check out WalletHub’s guide to the different types of car insurance.

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Answer 1 · 2021-07-08 10:58:27

WalletHub, Financial Company

@WalletHub • 07/08/21 This answer was first published on 07/08/21. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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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

Collision insurance
Comprehensive insurance
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.

To learn more, check out WalletHub’s guide to the different types of car insurance.

Answer 2

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Types of Insurance that Cover Damage to Your Car

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People also ask

What insurance covers damage to your vehicle caused by something other than a collision?

What are the 3 types of car insurance?

3 Major Types of Car Insurance

1. Liability insurance… read full answer

2. Comprehensive insurance

3. Collision insurance

Other Types of Car Insurance

What does fully comprehensive insurance cover?

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