{"id":5704,"date":"2022-03-29T07:56:00","date_gmt":"2022-03-29T07:56:00","guid":{"rendered":"https:\/\/www.freeway.com\/knowledge-center\/?p=5704"},"modified":"2023-09-21T17:47:01","modified_gmt":"2023-09-21T17:47:01","slug":"car-insurance-coverage","status":"publish","type":"post","link":"https:\/\/www.freeway.com\/knowledge-center\/auto\/car-insurance-coverage\/","title":{"rendered":"Understanding Car Insurance Coverage"},"content":{"rendered":"\n
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Car insurance<\/strong> is a contract between the car\u2019s owner and an insurance company<\/em> that at its simplest level means the insurance company will give you money if certain covered events happen to you and your vehicle – as long as you pay your premium. <\/p>\n\n\n\n Driving a car is inherently dangerous, mainly because there are numerous other individuals on the roads doing the same thing and, well, accidents happen. That\u2019s why it is so important to find affordable car insurance<\/a> that offers you, your passengers and your vehicle the best protection for peace of mind. <\/p>\n\n\n\n Most of us have to drive around to do things like go to work, go grocery shopping and visit friends. And driving around means we need\u202fcar insurance\u202fcoverage and understanding it is vital to get the right policy. There are many different types of car insurance<\/a> so it\u2019s important to understand what\u2019s available and what you need. <\/p>\n\n\n\n Depending on the level and amount you choose, car insurance can go from completely replacing your car to providing a very basic level of protection that in most states is for the other driver if you are at fault in an accident. <\/p>\n\n\n\n If you choose to purchase what is called full coverage car insurance<\/a> and on top of that add new car replacement coverage<\/strong>, you\u2019ll be sitting pretty no matter who caused the wreck. If you choose the basic state-required minimum liability<\/a> and you cause a wreck, you\u2019ll most likely be facing some pretty hefty out-of-pocket costs. <\/p>\n\n\n\n We think everyone needs more than just the minimum level of coverage. But not everyone necessarily needs full coverage. This guide will help you figure out how much protection you and your car actually need. <\/p>\n\n\n\n There are six different\u202ftypes of basic car insurance in addition to a variety of optional car insurance coverages you can add. Before you can decide what type of coverage you need, it\u2019s important to understand all the available coverage. Let\u2019s look at those basic coverages. <\/p>\n\n\n\n The most basic kind of car insurance is\u202fliability coverage<\/a>. It\u2019s typically the state-mandated car insurance all drivers must carry and consists of bodily injury\/death and property damage, in most cases*. In at-fault states, bodily injury liability and property damage liability help pay for the injuries and property damage of other driver(s) and passengers that occurs because of an accident you caused. In no-fault states, this coverage pays for your own injuries and damages, regardless of who caused the wreck. <\/p>\n\n\n\n How much liability protection you have depends on the level of coverage you decide to buy. For example, your state will have a legally required minimum level of coverage<\/a> for each type of liability insurance. If the damage exceeds that amount, you will need to pay for the rest out of pocket. In at-fault states, your minimum liability will pay for the other driver\u2019s costs up to your policy limits, but pay nothing for your own, so you\u2019ll be out for your injuries and damages. <\/p>\n\n\n\n Most states mandate a minimum amount of liability coverage a driver must carry. For example, in Mississippi, drivers must have $25,000\/$50,000 in bodily injury liability and $25,000 in property damage liability. What that coverage equates to in actual cost for you per month is between you and your insurance company. <\/p>\n\n\n\n *Florida only requires $10,000 in property damage liability and $10,000 in Personal Injury Protection. <\/p>\n\n\n\n The primary quality of liability insurance is that it pays out when you are at fault. If the other person is at fault, you will get paid out from their own liability insurance.<\/p>\n\n\n\n However, many drivers want some guaranteed protection for their vehicles, which is exactly what collision insurance offers<\/a>.<\/p>\n\n\n\n Whether you cause an accident or are the victim of an accident, collision coverage will pay for damage to your vehicle up to the covered amount.<\/p>\n\n\n\n While collision insurance protects your vehicle from accidents, there are other ways your automobile might get damaged. And one of the best ways to protect against these additional threats is comprehensive coverage<\/a>.<\/p>\n\n\n\n Comprehensive coverage is one of the most misunderstood terms in the world of car insurance. So let\u2019s review some answers to your question: What does comprehensive coverage car insurance cover?<\/p>\n\n\n\n Typically, your comprehensive insurance will cover your car in the event of vandalism, theft, flood, or fire. Other covered losses may be specified by your insurance carrier.<\/p>\n\n\n\n As with other types of insurance, though, comprehensive coverage will only cover the losses specified in your policy. Despite the name, this type of insurance is not completely comprehensive. And you\u2019ll need both collision and comprehensive insurance if you are leasing or financing a car<\/a>.<\/p>\n\n\n\n Unfortunately, there are many drivers on the road who do not have any car insurance at all. Some drivers do not have enough coverage. When there is an accident and one of these drivers is at fault, there may be no \u2013 or not enough \u2013 money to cover your injuries and damages. In some states, purchasing uninsured motorist coverage<\/a> and underinsured motorist coverage<\/strong> is part of the mandatory required car insurance. But many states do not require this protection. <\/p>\n\n\n\n UIM coverage gives you an extra level of protection in case of an accident. <\/p>\n\n\n\nWhat Does Car Insurance Cover?<\/h2>\n\n\n\n
There are 6 Different Types of Car Insurance<\/h2>\n\n\n\n
1. Liability Insurance<\/h3>\n\n\n\n
2. Collision Coverage<\/h3>\n\n\n\n
3. Comprehensive Coverage<\/h3>\n\n\n\n
4. Uninsured Motorist Insurance and Underinsured Motorist Coverage<\/h3>\n\n\n\n
5. Personal Injury Protection (PIP) No-Fault Insurance<\/h3>\n\n\n\n