The Different Types of Vehicle Insurance


It can be an exciting time to finally be able to drive your own car. After months of saving up, you now hold the key to your brand new car. But before you go on that much anticipated road trip, you need to buy car insurance.

As a responsible vehicle owner, you need vehicle insurance which serves as a layer of security and protection especially in cases of accidents, as well as unforeseen damages and losses due to theft.  Insurance can help you manage expenses, damages, and liabilities to your own property and others’.

When purchasing car insurance, it is important to be familiar with the different types of insurance plans and coverage available so that you will know the best way to protect yourself, your passengers, and your property. Listed below are the different types of car insurance you can choose from:

1.Personal Injury Protection

Personal Injury Protection (PIP) can aid you in paying for you and your passengers’ medical expenses caused by vehicular accidents no matter who is at fault.

2.Uninsured and Underinsured Motorist Coverage

This covers expenses of drivers who are not insured or those who have very minimal coverage. In case of an accident, things can get problematic when the driver who is at fault does not have proper insurance to cover and pay for the damages to the other party’s vehicle as well as treatment for injuries.

3.Collision Coverage

This covers expenses for damage repairs and parts replacements to the policyholder’s vehicle. This coverage is important as it can lessen the burden when it comes to managing expenses, especially if damages are extensive. If the car gets totalled and the expenses exceed the value of your vehicle, then insurance will pay for the value of your vehicle. In most states, collision coverage is required to be purchased by vehicle owners alongside comprehensive coverage, especially if the vehicle is under a loan or lease.

4.Comprehensive Coverage

Comprehensive insurance can protect you against damages not caused by collisions. This can cover expenses for unforeseen incidents such as weather damage, freak accidents, theft, and those not covered by collision coverage.

5.Liability Insurance

This type of insurance covers damages and liabilities caused by the policyholder to the other party involved in an accident. It will shoulder medical bills and expenses for damage repairs. This however does not cover the damages and injuries incurred by the policyholder or his passengers.

Aside from what we have mentioned above, there are other insurance policies and coverage that you may acquire depending on your needs. Insurance companies offer other packages that still focus on protecting your health, vehicle, passengers, and finances.

 You are not required to purchase all types of coverage, as some may be more expensive than the others. The important thing is that you purchase auto insurance that will be able to protect you and your passengers financially in case you get into an accident.