When you buy a car, you must ensure it is insured. Not only does this protect you, but it also protects others from any liability that may arise from a car accident. If you have not yet purchased car insurance, here are the types of policies available.

Collision Coverage

If you have collision coverage, you’ll be covered for the cost of repairs to your vehicle if you get into an accident. This is the most common type of car insurance policy and is required in most states. Regardless of who caused the accident, collision coverage will cover damages to your car. However, it only covers damage from a collision with another vehicle or object, such as a tree. If you hit an animal or swerve to avoid hitting one, you’re out of luck unless you have other types of coverage, like Comprehensive Coverage.

Comprehensive Coverage

Comprehensive coverage pays for damages to your car caused by things other than collisions with other vehicles or objects, such as vandalism or theft. Comprehensive coverage will also pay for damage caused by fire and weather events (like hailstorms). Some people choose not to buy comprehensive coverage because they don’t drive their cars often enough to make it worth it, but keep in mind that if something happens to your car while parked at home and unattended, you may be out of luck without this kind of insurance.

Liability Coverage

Liability coverage is the most basic type of auto insurance policy. It protects you and your family if you cause an accident that injures another person or damages another person’s property. The liability coverage you need depends on several factors, including the cost of the cars you own, your state’s minimum requirements, and whether you have a spouse or other family members who may be financially responsible for damages caused by your car.

Underinsured Motorist Coverage

In the event that you are struck by a driver whose insurance is insufficient to cover all of your damages, underinsured motorist coverage offers you additional protection. For example, if someone hits your car and causes $20,000 worth of damage but only has $15,000 in insurance coverage available to pay for that damage, underinsured motorist coverage would make up the difference between $15,000 and $20,000.

Medical Payments Coverage

Medical payments coverage pays the costs of medical treatment for you or your passengers if you’re injured in an accident. It’s separate from your health insurance, so you’ll need to pay out-of-pocket until your health insurance kicks in. Any state doesn’t require this coverage, but it’s valuable if your car insurance company offers it at a low cost.

Uninsured Motorist Coverage

If you are hit by an uninsured driver who causes injuries or property damage in an accident, you are protected by uninsured motorist coverage. You should consider this if you live in a state that doesn’t require uninsured motorist protection to be included in your policy. If you don’t have it, you’ll have to rely on the at-fault driver’s liability coverage to pay out damages from their policy limits.

Conclusion

For many people, deciding what type of insurance they need can be complicated. It’s important to research your options and understand how the different types of insurance work together. As long as you understand the basics of car insurance, you can take any situation you’re in and know the next steps to get back on the road again.