Auto Insurance: Types & Add-Ons You Should Know About

The road can be a dangerous place. You can never be over-prepared for a car breaking down or ending in a collision. While we understand that car insurance isn’t the most exciting thing to spend your money on, it can help protect you, your passengers, and your vehicle during a car accident.

If you plan on buying a new car or are looking for the best auto insurance plans online, you should understand the various types of coverage and add-ons available:

Uninsured or Underinsured Motorist Coverage

Uninsured motorist coverage is mandatory in certain states of the U.S. It protects you, your passengers and pays for the repair of damages incurred if you get struck by a hit-and-run driver or a person who doesn’t have auto insurance. Along with repair costs, it also covers medical expenses for you and your passengers.

Collision Coverage

Collision coverage does as the name suggests. If your vehicle gets into a collision, this coverage helps pay for vehicle repairs. In situations where the repair costs are higher than the value of your car, your insurance provider would rather pay for the vehicle instead of covering the repairs.

If you have just bought a new car, collision insurance is an absolute must-have!

Bodily Injury Liability Coverage

In an accident where you end up injuring others, bodily injury liability coverage covers the cost of medical treatment, funeral expenses, rehabilitation costs, legal fees, and pain-and-suffering costs.

This coverage extends to the passengers in your vehicle, injured pedestrians and those traveling in the other car, or even injured pedestrians.

Property Damage Liability Coverage

This liability coverage covers any damage your vehicle causes to other cars and property like fences, walls, garages, and others. Property damage liability coverage pays for the property repair or replacement. But unlike other liability coverages, it rarely coverages any damages incurred by your car.

Comprehensive Coverage

Comprehensive insurance pays for vehicle damages other than those caused by a collision. The coverage includes theft, riots, vandalism, fire, natural disasters, damages caused by animals, and falling objects. Under this coverage, the insurer also pays for any contents that get stolen from your car.

Car Insurance when Leasing

When you lease a car, the dealer may require you to purchase gap insurance to cover any accidents or the car getting stolen. In these cases, the gap insurance pays for the difference in the value of the car and the amount you still owe on the lease. Some leases include this coverage by default, be sure to read the fine print carefully before shelling out extra cash.

 Medical Expenses Coverage

Medical expenses coverage applies to the driver and passengers of a vehicle at the time of an accident. This coverage also includes injuries sustained as a passenger in your friend’s car or if you get hit by a car while crossing the street.

Types of medical expenses covered include; doctor’s visits, surgeries, funeral costs, hospitalization, ambulance fees & more.

Motorcycle Coverage

Auto insurance does not cover motorcycle accidents. If you ride a motorcycle, you should invest in motorcycle coverage that pays for the damages to your bike if you are involved in a collision.

Car Rental

Most auto insurance policies extend to rented vehicles. But if you don’t have existing auto insurance, you should opt-in for car rental insurance. You can buy it directly from the car rental company, or you can buy a standalone policy from the cheapest auto insurance companies you find. This type of insurance also covers the cost of the car you rent while your vehicle is getting repaired

Now that you understand the various types of auto insurance plans available in the market, you can begin your search for the best auto insurance plans online!