Six Types of Car Insurance: Your Coverage Explained
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As if buying a car weren’t overwhelming enough, before you can drive your new car, you’ll have to get signed up for car insurance. The world of car insurance can feel intimidating and confusing. A range of coverage choices, premiums, and deductibles can make it difficult to know where to even begin. Here, we outline the six types of car insurance and break down what it all means.
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Rental reimbursement coverage
If you’re involved in an accident, rental reimbursement coverage will cover the cost of a rental car while your car is being repaired. Rental reimbursement is especially worth considering if you don’t have a backup mode of transportation. Read more…
Collision coverage
If you cause an accident, your property damage coverage (see below) will cover any damage you cause to others’ property, but does not cover your own car. Without collision coverage, you’ll be paying out of pocket to fix your own car. Read more…
Uninsured motorist coverage
In the event you’re involved in an accident with an uninsured or under-insured motorist, you would be held responsible to pay for damages their insurance would otherwise cover. Protect yourself and your family for the worst-case scenario, and consider uninsured motorist coverage. Read more…
Comprehensive physical damage coverage
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Comprehensive physical damage coverage protects you against damage to your car caused by anything except a car accident. Natural disasters, vandalism, theft, weather, and damage caused by an animal all qualify.
Personal injury protection
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Personal injury protection is a supplement to a driver’s health insurance, covering both the driver’s and passengers’ medical expenses that may not be covered by health insurance. Loss of income, funeral expenses, and child-care expenses are a few of the expenses that qualify for coverage. Read more…
Property damage liability
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One of the most basic insurance coverage requirements, property damage liability covers damage you cause to another person’s car or property. Read more…
Steps to take if you’ve been involved in an accident
Don’t forget to print this handy accident information exchange checklist and keep it in your car. While none of us plans to be in an accident, we can never be too prepared. This checklist will help you keep calm and walk you through all the information you’ll need to capture for a police report and to submit your claim to your insurance company.
Catherine Hiles (she/her) is a native Brit living and working in Dayton, Ohio. Cat has written about a variety of subjects, including finance, cars, and parenting. She is a frequent contributor to Dayton Mom Collective, The Penny Hoarder, and WDW Magazine.
Cat lives with her husband, their two kids, and their energetic pitbull mix. She counts running, lifting weights, walking, and reading among her hobbies. See more articles by Cat.