Since auto insurance may seem like an added expense until you move forward with a claim, you might automatically go with the least expensive policy you can track down. While every state has minimum requirements in case of an accident, it’s sometimes a better option to choose a little more coverage. Here’s what you should know about the most common varieties of auto insurance. 

4 Types of Auto Insurance

1. Liability

Liability insurance covers you if you are involved in an accident and determined to be at fault. This will help you cover any medical bills and repairs for the other party involved in the accident—but not for yourself. This variety of insurance is popular for older vehicles that may not be worth repairing if they were involved in an accident. 

2. Collision 

Collision insurance covers your medical bills and repairs for your vehicle if you are involved in an accident. Collision insurance premiums can vary significantly depending on the make, model, and year of your car, with more common, low-value vehicles being less expensive to repair. 

3. Comprehensive Coverage 

Unfortunately, there are instances where your vehicle is damaged outside of an accident. If you hit a deer or a tree branch falls on your vehicle, collision and liability insurance won’t provide the coverage you need. However, comprehensive coverage provides insurance for these other perils, helping you cover your costs. 

4. Uninsured Motorist

While the guilty party involved in a car accident is responsible for deductibles, there may be instances when you are involved in an accident with another driver who isn’t insured. Uninsured motorist coverage provides you with protection for these types of sticky situations, so you aren’t left with a bill for an accident with a less responsible driver. 

Protecting your family and your finances starts with a great auto insurance policy, which is why Daniel Oliver Insurance Agency is there to help. With more than 30 years of experience, this trusted Edina, MN, agent can help you with everything from vehicle protection to homeowners and life insurance policies. Call (952) 925-4454 to request a quote on coverage.