To protect yourself and other drivers from the unexpected, car insurance provides peace of mind. Having the right type of coverage is typically connected to factors such as commute times, the type of vehicle you drive, and other driving factors. If you’re unsure about which policy may suit your needs, consider why the most common ones are chosen to determine which may be right for you.

5 Car Insurance Plans Used By Most Drivers

1. Collision

Most standard collision policies will pay for the repair or replacement costs after a vehicle accident. This includes damages involving another vehicle as well as impact with buildings and trees. The plan also extends coverage to damage caused by poor road conditions. If the driver’s vehicle is being financed by a bank or other lender, they typically will require collision insurance until the car is paid for in full.

2. Comprehensive

Scenarios such as theft, vandalism, or fallen tree branches are covered under a comprehensive car insurance policy. Damage caused by natural disasters including hail, ice, and storms are also included. Many carriers package comprehensive and collision plans together. Like collision coverage, a comprehensive policy is often required for vehicle loans and leases.

3. Liability

This type of car insurance kicks in if the policyholder causes an accident. Liability coverage will pay for the other driver’s vehicle repairs and any medical expenses. The policy does not extend protection to the policyholder, their car, or their passengers. Most states, including Wisconsin, require drivers to have liability coverage in order to register their vehicles.

4. Underinsured & Uninsured

There are drivers on the road who don’t have any car insurance, or their coverage only meets the state’s minimum requirements. An underinsured and uninsured policy protects drivers involved in accidents with these types of drivers. The plan will pay for the policyholder’s repair and replacement costs caused by underinsured and uninsured drives. Depending on the policy, coverage may also include medical expenses stemming from any injuries.

5. SR-22

Drivers who have committed major traffic violations may lose their driver’s licenses. Some car insurance providers won’t provide them with coverage due to their risky driving behavior. An SR-22 is a certificate provided by insurance providers to state department of motor vehicles showing that the high-risk drivers are carrying the minimum required coverage. SR-22s are typically used by those who have been charged with DUIs, have excessive tickets or points, or have had their driver’s license suspended.

Your driving habits are as unique as your personality. Securing the right type of car insurance can offer customized protection on the road. Let the team at Northwoods Insurance Agency in Crandon, WI, help you get affordable and reliable coverage. Since 1985, the independent agency has worked with the nation’s leading carriers to get their clients budget-friendly policies. To learn more about protecting you, your vehicle, and loved ones, call (715) 478-2215 for a consultation, or visit their website for information on the agency’s full suite of services including homeowners insurance.