In most states, it’s the law that you must have auto insurance to be a driver. These policies protect you and other drivers financially if an accident occurs, but how do you know what coverage is right for you? If shopping for auto insurance is making your head spin, follow the guide below to learn about four common types of coverage.

What Are the Types of Car Insurance?

1. Liability

This is the form of auto insurance that’s legally mandated in many states. If you get in an accident where you are at fault, your liability insurance will pay for car repairs or replacement and medical costs associated with the accident.

2. Comprehensive

While liability insurance only kicks in when you’re involved in an accident, comprehensive can guard you from other sources of damage. For example, if someone breaks a window to burglarize your car, a comprehensive policy may help pay for repairs. The same goes for fires, hailstorms, and other sources of damage covered in the policy. You’ll just have to meet your deductible, the amount you pay out of pocket as specified in the policy, and the insurance will cover the rest.

3. Collision

Like liability coverage, collision kicks in for accidents, but only when no other drivers are involved. If you accidentally total your car hitting a tree or sideswipe a mailbox and ruin the paint job, your collision policy will be there for you. While this coverage is usually optional, you may be required to have it if you’re leasing a vehicle or making car payments.

4. Uninsured or Underinsured Protection

Just because driving with insurance is the law in your state doesn’t mean every driver will do so. If you get in a wreck with an uninsured or underinsured driver, you could end up footing a hefty bill. Adding this protection to your auto policy doesn’t cost much, and it can pay for itself many times over if you’re ever in an accident with someone with inadequate insurance.

 

Unsure which auto policies are right for your driving lifestyle and budget needs? Robert Rung Insurance in Lincoln, NE, can help you find affordable coverage for home, life, and auto. As an independent agent, he can help you shop coverage from many of the nation’s biggest providers. Learn more on his website, and call (402) 483-2279 for a no-obligation quote.