Different Types of Auto Insurance to Lookout For

Insurance companies offer different kinds of auto insurance to meet almost every need. Every state requires that drivers carry a minimum amount of coverage on their vehicles to be able to drive them legally. When you start shopping for a good auto policy, you may be surprised at the different types you have to choose from. Some are more basic than others, but all provide quality coverage.

Liability Coverage

Liability coverage must be purchased if you plan on driving within your state. This type of coverage pays for injuries and property damage others may incur if you are involved in an accident.

Collision Insurance

Collision insurance pays for damage to your vehicle if you are involved in an accident. It can be used to pay for a new vehicle or cover the cost of your repairs.

Comprehensive Coverage

Comprehensive insurance covers almost any damage in addition to collisions, theft, and weather-related events. It also covers damages caused by accidents involving animals.

Uninsured Motorist Coverage

Uninsured motorist coverage covers damages to your vehicle caused by a motorist who didn’t have a valid auto insurance policy. This type of auto insurance policy also covers hit-and-run accidents.

Underinsured Motorist Coverage

Underinsured motorist coverage is designed to protect you if you are involved in an accident where the other driver only has the minimum insurance required by the state. This may be cost-effective for them but extremely expensive if their policy isn’t sufficient to cover your damages.

Medical Payments Coverage

Medical payments coverage will pay for your injuries no matter who is at fault. With the rising cause of healthcare, this type of insurance coverage is a must.

Personal Injury Protection Insurance

A personal injury protection insurance policy may cover as much as 80% of the medical expenses you incur due to an accident that is covered under your policy.

Gap Insurance

Gap insurance is used to bridge a gap in the payout of an auto policy if a car is involved in an accident and doesn’t hold enough value to cover what remains on the auto loan.

Towing and Labor Insurance

If you have comprehensive auto insurance, you also have the option to purchase towing and labor insurance. This will cover any towing or labor fees that must be paid after an accident.

Read more:When Can I Stop Carrying Comprehensive and Collision Coverage on My Car?

Rental Reimbursement Insurance

If you’ve been involved in an accident, you must have a rental car to drive until your vehicle is fixed or replaced. Rental reimbursement insurance covers the cost of a rental while you are waiting.

Classic Car Insurance

Owning a classic car is like owning a little bit of history. These cars may only be driven on special occasions and may be more valuable than your other cars. Vintage and classic cars are normally 25 years old or older and are sought after by collectors.

Understanding the different types of car insurance will help you figure out what types of insurance you may need. Contact our agents here at  Burton A. Harris Insurance Agency. We have access to various policies you will need to protect your vehicles fully. Schedule a policy review with one of our agents, and we will provide you with the coverage you need.