From No Fault to Comprehensive Car Insurance: Learn the Difference between Common Types of Car Insurance

When researching what car insurance may be right for you, it could be important to review all your options. There could be many types of car insurance available such as comprehensive insurance or collision insurance. Reviewing each of these and how they work may help you to make a more informed decision. Let’s review some of the most common types of car insurance.

  1. No Fault Insurance: This type of insurance, also generally known as PIP insurance, may help the insured cover his/her medical expenses and possibly some other bills related to a car accident. No fault insurance may be available in all U.S. states but could be mandatory in several. Laws may vary in each state regarding no fault insurance. You may want to be sure to research the rules in your state.
  2. Liability Insurance: A type of insurance which may help to cover costs if you are held legally liable in an accident. This means it may help cover costs related to the other person in the accident, which may help protect the insured person in cases with legal costs and/or payouts.
  3. Comprehensive Insurance: Comprehensive car insurance may  help to cover damages not related to a collision. If your car is hit by a rock, harmed in a fire or even stolen, having comprehensive car insurance may help cover the damages. For more information please read the article about Full Coverage Auto Insurance.
  4. Collision Insurance: Unlike comprehensive insurance, Collision insurance’s main purpose may be to help cover damages on the insured person’s car as a result of an accident. This may range from hitting another vehicle, being hit by another vehicle, or collisions involving pedestrians or objects such as signs. In many cases you may be able to opt not to include collision insurance.
  5. Uninsured Motorist Protection: This type of insurance may also be referred to as “UM.” It may help protect you in case a driver without insurance hits you. Generally this may help cover both you and your passengers’ expenses, which result from the accident.
  6. Gap Insurance: Guaranteed Auto Protection insurance may typically be for individuals who have financed or leased their vehicle. If your car is totaled as a result of weather conditions, an accident, or is stolen you may still have an outstanding loan to the credit company. GAP insurance may help to cover this outstanding balance.

Understanding the options offered when choosing the right auto insurance for you, can be very helpful. You may want to evaluate your specific needs in regards to car insurance and choose the policy that may help cover your particular needs. Fill out the quote form to receive free quotes.