Did you know that in 2019, almost 13% of US drivers were uninsured? Don’t be part of that statistic!
Understanding the types of auto insurance is crucial for your safety and wallet. In this article, we’ll break down the different types of car insurance and guide you through choosing the right coverage for your needs.
Types of Auto Insurance: The Basics
There are several types of auto insurance available and each type covers different situations. Some common types of car insurance are:
Bodily Injury Liability Insurance
Bodily Injury Liability Insurance does not directly protect you or your car. Instead, if you cause an accident that injures other people, it safeguards you against their claims for:
- Medical expenses
- Lost wages
- Pain and suffering
- Other losses up to the stated policy limits
Property Damage Insurance
Property Damage Insurance is another essential coverage when you buy auto insurance. This insurance pays for any damage, up to the stated amount, that you cause to the property of others. Examples of such damage could include a crushed fender, broken glass, or a damaged wall or fence.
Uninsured Motorist Coverage
Uninsured Motorist Coverage is vital for protecting yourself and your passengers. This coverage applies to bodily injury sustained by occupants of your vehicle when hit by an uninsured motorist or a hit-and-run driver.
Underinsured Motorist Coverage is usually included. This provides additional protection when the at-fault driver’s insurance is insufficient.
Medical Payments
Medical Payments coverage provides for medical or funeral expenses for people injured or killed in your car. This coverage also extends to you and members of your family if hit by a car or injured while riding in another vehicle.
Collision Coverage
Collision Coverage is essential for protecting your car in case of an accident. This coverage pays for damages to your vehicle if it collides with an object, including another car, or if it overturns. Your own insurer will pay for such damage even if the collision is your fault. Limits are based on the actual cash value of your car.
Comprehensive Coverage
Comprehensive Coverage offers broad protection for your car against almost all types of damage, except those caused by collision. Some examples of events covered by comprehensive insurance include:
- Fire
- Theft
- Glass breakage
- Falling objects
- Explosion
- Flood
- Earthquake
This coverage is also based on the actual cash value of your car.
Understanding Policy Limits and Deductibles
When selecting your auto insurance policy, it’s crucial to understand policy limits and deductibles. Policy limits determine the maximum amount an insurance company will pay for a covered claim. It’s essential to have adequate limits, as you could be responsible for any damages that exceed them.
Deductibles are the amount you pay out-of-pocket before your insurance kicks in. Higher deductibles typically result in lower premiums, but they also mean you’ll pay more in case of a claim. Carefully consider your financial situation and risk tolerance when choosing your deductible.
Don’t Risk It, Get Insured
Navigating the types of auto insurance can be confusing, but it’s essential to have the right coverage for your unique situation. RBP Insurance is here to help you find the perfect policy for your needs. With our expertise and personalized approach, you can have confidence in your auto insurance coverage and focus on what matters most – enjoying the open road.
Don’t leave your financial security to chance. Contact RBP Insurance today to schedule an appointment with one of our auto insurance specialists.