Maybe you already have an idea of how car insurance works but are you aware that there are different types of auto insurance? By knowing these different types, you can decide better which one is the perfect choice for you based on your needs. Remember, while at least one insurance is recommended, it’s still better if you have more than covers other expenses arising from an unfortunate accident.
This is the most basic car insurance. In most places, it is required to have one if you have a car. This insurance covers expenses and damages from a covered accident where you are legally responsible. It also includes payment to any injuries you might have caused.
This insurance provides another level of protection to you and your car in case something bad happens. It does not only cover road accidents, but also other things that can cause damage to your cars such as vandalism, extreme weather conditions, and animal threats.
This insurance is highly recommended to those who do not have complete confidence in their driving skills. As this insurance does not only pay for damages to other properties, but it might also replace your car.
Towing and Labor Insurance
If you already have your comprehensive insurance, then this type of insurance focuses on expenses incurred when your car is towed. It also covers the cost of labour when your car is being repaired. This kind of insurance is particularly helpful for those who constantly need repairs for their cars.
Personal Injury Protection Insurance
This type of insurance covers medical expenses that might arise due to an accident involving your car. For some, loss of income resulting from the accident is also covered. But this is also dependent on the limit of the policy but normally, it covers up to 80% of the total medical expenses.
This kind of insurance is very important too especially to those who are paranoid about them getting involved in an accident.
There are other types of insurance such as collision insurance, medical payments insurance, gap insurance, rental reimbursement insurance, etc. But the above mentioned are the most important ones that you should consider getting for your car.