What Auto Insurance Coverage Do I Need

It is also important to note that the legally required types of coverage are not the same in every state and that drivers should verify that they are carrying the legally mandated types and amounts of car.

What auto insurance coverage do i need. Liability car insurance is the coverage that pays to repair the damage you cause to other people and their things. Three of the most important types of auto insurance you can have are liability comprehensive and collision coverage. So how much car insurance do you really need to protect you your passengers and your car. But first let s take a look at what each kind of insurance coverage is and what s offered.

Here s what you need to know about liability vs. Do you need uninsured motorist coverage. There are five basic types of auto insurance. Do i need full coverage insurance to finance a car.

While there is no coverage under car insurance one can just check off for full coverage most people refer to having full coverage as meaning you have your state s mandatory coverages usually bodily injury liability and property damage liability plus the optional coverages of comprehensive and collision placed on your vehicle. Types of auto insurance coverage basic extended and premium basic coverage. Liability just means responsibility so liability insurance protects you. There are a lot of different types of policies and coverage options so shop car insurance plans and rates before you shop.

Liability coverage collision coverage comprehensive coverage uninsured motorist and medical payments coverage. In order to determine what types of coverage you need it is important to understand the different types of policies and what they were created for. The basics of auto insurance coverage. Lenders require full coverage insurance to finance a car for the duration of the loan.

Before you purchase any type of recommended auto insurance coverage be sure to study your other insurance policies so you don t end up paying for something you don t need. If your state doesn t require um coverage you might be wondering if you should add it to your auto insurance policy. Other common types of coverage can protect you if you need to rent a car due to an accident require roadside assistance or have to pay off a loan on a vehicle that was totaled. In the u s and a full coverage policy is required for all new and used vehicles that are financed.