Explaining Auto Insurance Coverage Types

A common misconception surround auto insurance is that having a policy entitles you to all forms of coverage. This is far from the truth. As a result, when many turn to their car insurer, they get turned away because they aren’t covered in their particular situation. Make a point to become familiar with the different types of auto coverage available, and keep them in mind when choosing an auto insurance plan.Auto-Insurance-Coverage-Types

Liability Coverage

Liability coverage covers the expenses, or part of them, in cases that you are responsible for. However, it is not that simple, there are many different kinds of liability coverage.

Bodily Injury Liability – This type of coverage insures bodily damage, harm, or death that you were responsible for. This includes medical bills, lost income, and pain and suffering. Legal costs are also covered under this type of coverage. Don’t sell yourself short here, medical and legal bills can be the most costly part of an accident.

Property Damage Liability – Not only does this form of coverage covers damage to a car, but it also covers all other forms of property. From damage to homes, to mailboxes, and everything in between. Once again, this also covers any related legal bills.

Physical Damage Coverage

Physical Damage Coverage entails damages done to your vehicle. Not only does it cover damage caused in an accident, but also covers your car in cases of theft, vandalism, and other rare occurrences. Not all policies cover the same areas, so check with your particular company beforehand.

Comprehensive Coverage – Comprehensive coverage covers your vehicle, and sometimes other vehicles for damages caused by things other than collision. Each policy varies so check with your prospective insurance company before signing up. Common scenarios that this form of coverage covers are damages caused by theft, fire, water damage, animals, or vandalism. This form of coverage is typically recommended for high end or expensive vehicles, as well as financed or leased vehicles.

Collision Coverage – This is the most common type of auto insurance coverage, and is required by most state laws. This covers damages done to your vehicle in case of a collision. Choosing a large deductible, the amount you pay out of pocket, can greatly reduce your premium costs.

Uninsured and Under Insured Coverage

Uninsured Motorist Coverage and Underinsured Motorist Coverage – This form of coverage protects you against scenarios in which the other party (if at fault) doesn’t have insurance or if they decided to hit and run. In other words, if they aren’t able to cover the damage your auto insurance company will cover the costs.

These are the 5 most common types of auto insurance coverage. However, there are many more forms of coverage available. Other types of coverage are geared towards medical, legal, and other expenses that many people don’t ever use. For the best protection it is ideal that you get as much coverage you can possibly afford.  To learn about how much auto insurance coverage you should equip yourself with, please read this article.

Additional Information Regarding The Types Of Insurance Coverage

  • AllState – Typical components of an auto insurance policy
  • AutoInsurance.org – An in depth guide on the different types of car insurance coverage.


  Comments: 1

  1. I a jeep full cover insurance / and liconl ls liability cover only diferent policies same insurance company, lincoln was parked on the street i hit it with the jeep file a claim but insurance company wont pay out they said that the policy wont cover my family damages.
    what can i do?

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