What Are 4 Types of Vehicle Insurance Coverage?

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Auto insurance is a contract between yourself and an insurance carrier. This contract states that you will pay a certain amount each month and in return the insurance carrier will cover any losses that occur as a result of a covered incident.

Auto Insurance

  • Most states require drivers to carry, at minimum, insurance designed to cover injuries and damage done to others; however, these requirements vary from state to state. Failure to secure auto insurance can result in a hefty fine, loss of driving privileges and even jail time.

Collision Insurance

  • Collision insurance covers damage to your automobile caused by colliding with another car. This coverage also covers damage incurred if you experience a rollover, collide with another object and damage done by pot holes.

Comprehensive

  • Comprehensive insurance covers damage to your vehicle that is not the result of a collision with another vehicle. This includes damage caused by flood, hail or other acts of God, as well as vandalism, damage caused by animals and theft.

Liability Insurance

  • Liability insurance covers damage to another person's car or medical injuries suffered by others as a result of an accident with you. This insurance does not provide any coverage for you and is the minimum coverage required by most states.

Uninsured/Underinsured Coverage

  • This coverage provides payment to you if you are involved in an incident with someone who does not have insurance, or does not have enough insurance, to cover the cost of the damage or medical bills you may incur.

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