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What Are the Different Types of Car Insurance That Exist Today?

Did you know that the average American spends over $1,000 each year on auto insurance?

While having insurance is mandatory, you might feel confused as a first-time car buyer. Which policy should you choose, and how much coverage do you need?

This post will take a look at the different types of car sr22 insurance Indiana. And, as a result, you’ll feel confident as a smart driver, ready to pick out your new policy!

Keep reading below to learn what you need to know.

Liability Coverage

Even if you are a good driver, you may cause an accident. And, if this were to occur, liability insurance is what protects you from paying for damages out of pocket.

This insurance includes both bodily injury and property damage, covering costs related to another person’s injuries or property.

In most states, liability coverage is mandatory, so you will need to purchase the minimum required where you live.

Uninsured and Underinsured Motorist Coverage

Unfortunately, not all drivers have insurance. And, sometimes, drivers with insurance don’t have sufficient coverage.

If an irresponsible motorist were to hit you, having this type of coverage would help you pay for medical bills or repairs to your vehicle.

Comprehensive Coverage

If your vehicle is stolen, vandalized, or damaged by weather-related perils, comprehensive coverage will help you pay for repairs or even replace the car if necessary.

This type of coverage has a deductible most of the time, so if you need to use it, you’ll have to pay a certain amount out of pocket.

Keep in mind that if you are leasing or still paying off your vehicle, you may need to have this type of coverage.

Collision Coverage

Usually, collision coverage is optional. But, it covers damages to your car or its actual value if you hit an object like a fence or a fallen tree.

Medical Payments Coverage

Some states require medical payments coverage, which pays for medical expenses when injured while riding in an uninsured vehicle. It may also cover family members or your passengers.

Personal Injury Protection

Personal injury protection isn’t available in all states. But, it is a great coverage to have because it helps you pay for any expenses related to your accident.

For example, this personal auto policy covers lost income or child care expenses during your recovery.

Other Types of Insurance

Besides the various types of insurance we reviewed today, your provider will likely have additional policies, such as:

  • Towing and labor cost
  • Rental coverage
  • Sound system coverage
  • Ride-sharing coverage

The options available to you will depend on your state. So, be sure to ask questions and consider whether these add-ons will benefit you!

Choose the Right Types of Car Insurance

Now that you understand the types of car insurance in the automotive industry, you are better prepared to choose the policy that meets your needs. Of course, working with a reputable insurance agent is also helpful, so be sure to contact one in your area for more assistance.

Would you like more tips on buying your first car or vehicle ownership? If so, don’t forget to explore more of our online content!