An auto insurance policy usually contains a number of different types of coverage that protect drivers against a variety of hazards. Some types are required by law, while others—although they are also very important—are purely optional. If you are a first-time buyer of auto insurance, the information below will prove useful in designing a policy that meets your needs.

5 Common Types of Auto Insurance Coverage

1. Liability

Liability insurance pays for damages and medical treatments if you should accidentally injure someone or damage their property. In Alabama, drivers are required to purchase $25,000 of bodily injury liability per injured person to a per-accident maximum of $50,000. Also required is $25,000 of property damage liability. This coverage also pays for legal fees arising out of an accident deemed your fault.

2. Collision

Liability coverage does not pay for injuries to you or your passengers or for repairs to your vehicle. For that, you need additional types of coverage. For instance, collision coverage pays for on-the-road damages sustained by your vehicle after a collision with another vehicle or a foreign object.

3. Comprehensive

Comprehensive coverage pays for non-collision damages your car suffers. These include flood damage, fire, hail damage, vandalism, and theft. When you buy comprehensive and collision coverage together, you are said to have "full coverage," because your car is protected against as many hazards as possible.

4. Medical Payments Coverage

This pays for medical care after an accident that leaves you or your passengers injured. It comes into play regardless of fault. If you have an exceptional health insurance plan, you may not need this optional auto insurance coverage. However, it is a valuable option if your health plan does not cover these types of injuries.

5. Uninsured/Underinsured Motorist Coverage

This is a lifesaver if you should become involved in an accident with an at-fault driver who is either uninsured or whose limits are not high enough to cover the extent of your losses. It pays the additional amount so you are not left out-of-pocket through no fault of your own.

For invaluable guidance designing an auto insurance policy, contact Russell Insurance Agency in Robertsdale, AL. They have been helping Baldwin County residents and businesses protect what matters most for over 20 years. They also specialize in business, life, motorcycle, and homeowners insurance. Visit their website to view location details or call (251) 947-3607 for a free quote.