6 Types of Car Insurance: What You Need in 2022

October 29, 2022

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The six most common types of auto insurance are auto liability coverage, uninsured/underinsured motorist coverage, comprehensive coverage, collision coverage, medical payments, and personal injury protection. . Some of these coverages may be required in your state, while others are only optional. Even if your state doesn’t require a type of coverage, it may still be available to purchase through your insurer.

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the six types of car insurance

liability: pays other people’s expenses after an accident. required in almost all states.
Collision: Pays to repair or replace the policyholder’s car after any accident, regardless of fault. only required for leased or financed cars.
comprehensive: Covers damage to the policyholder’s vehicle caused by something other than an accident. only required for leased or financed cars.
protection against personal injuries: pays the direct and indirect medical expenses of the insured after an accident. required in 12 states.
Uninsured/Underinsured Motorist: Covers vehicle damage and medical expenses after an accident with an uninsured or underinsured driver. required in 20 states.
medical payments: pays the insured’s direct medical expenses after an accident. required in two states.

civil liability insurance

what it covers: medical bills from other people and vehicle repairs after accidents caused by you. it does not cover any expenses for you or your passengers.

Reading: What insurance do i have on my car

Who Should Get It: Drivers in almost every state must have liability insurance in order to drive legally.

collision car insurance

What is covered: Damage to your own vehicle if you are involved in an accident with another car, hit a stationary object, or have a single car accident.

Who Should Get It: Drivers with a car loan or lease will need to have collision insurance. You should also get it if you can’t afford to repair or replace your car if it breaks unexpectedly.

comprehensive car insurance

What is covered: Damage to your own vehicle caused by something other than an accident, such as vandalism or a natural disaster.

Who should get it: Drivers with a car loan or lease will need to have comprehensive insurance. You should also get it if you can’t afford to repair or replace your car if it breaks unexpectedly.

personal injury protection (pip)

what it covers: medical expenses for you and your passengers after an accident. Qualifying expenses can include traditional medical bills as well as costs not normally covered by health insurance, such as lost income, child care, or even a funeral.

who should get it: drivers in any of the 12 states where pip is required. even if it’s not required, you should buy pip if it’s available in your state and you can afford it, as it can protect you against high medical bills.

uninsured/underinsured motorist coverage

What is covered: Medical bills and vehicle repairs if you are in an accident caused by an uninsured motorist or a driver who does not have enough liability insurance to cover your expenses.

Who should get it: Drivers in the 20 states that require uninsured motorist coverage. You should also consider buying it if you don’t have overlapping types of coverage, like collision or pip insurance.

medical payment coverage (medpay)

What it covers: Accident-related medical expenses for you, your passengers, your family members and other insureds. It can also cover copays and deductibles for other insurance policies, including health and PIP insurance. this type of hedging is similar to pip but has a more limited scope.

who should get it: drivers in maine and new hampshire, where required. If MedPay is optional in your state, you must still purchase it to supplement existing health insurance and PIP coverage.

other types of auto insurance coverage

Differential Insurance: Your vehicle depreciates over time, including the moment you take it off the lot. In a catastrophic loss, your auto insurer will only pay the actual cash value of your car, which could be less than what you owe on a loan or lease. gap insurance will pay for the dollar “gap” between your financing balance and the value of your car.
Comprehensive insurance: General insurance is not car insurance in the strictest sense. it’s an additional level of general liability protection beyond homeowners and auto policies, protecting assets of $1 million or more in the event of a lawsuit.
Rental Reimbursement: While your car is being repaired under a claim, Rental Reimbursement will keep you on the road by covering the cost of a rental car. There are limits on how much the insurer will pay per day and per claim, but it’s usually enough to cover a rental for the full amount of time your car is in the shop.
Emergency Roadside Assistance: This coverage option will provide assistance if you are locked out of your car, need a tow or jump start, have a flat tire, or run out of gas. if your car doesn’t work, you can get a tow to a nearby garage of your choice, up to a specified distance.
Mechanical Breakdown Insurance: Mechanical Breakdown Insurance can cover the cost of repairing mechanical parts and systems. This coverage is similar to extended warranties and service contracts, but unlike those products, you pay a monthly premium instead of paying a lump sum up front.
Usage Based Insurance (ubi): This is not a different type of insurance coverage; it’s just a new way to pay for insurance like liability, collision, and comprehensive coverage. By allowing the insurer to track your mileage and driving habits, you are eligible for discounts.
Non-owner car insurance: This is a type of liability insurance for people who do not own their own car. People without a car may need to purchase this insurance to get a suspended driver’s license back.
sr-22 insurance: an sr-22 is not a specific type of insurance, but rather a form that insurance companies file with the state to confirm that high-risk drivers carry the minimum required. sure. However, coverage with an SR-22 is often confused with a specific type of auto insurance.