Auto Insurance

When it comes to selecting auto insurance, there are many different types of coverage that can be selected. While some coverage is mandatory to protect you and other drivers, many aspects are optional.

Liability Insurance

Auto Liability insurance is required, and two common types include bodily injury liability and property damage liability. Bodily injury liability covers others in the event of an accident caused by you. While most bodily injury claims are for medical bills, some are for pain, suffering, or loss of income. An important thing to remember is that bodily injury does not cover you or others on your policy. Property damage liability covers others vehicles or property in the event of an accident caused by you. Generally vehicles are the source of property that is covered, but there are cases that include houses, fences, garages, etc. With liability insurance, you can select the amount of coverage you think you will need.

Collision and Comprehensive Insurance

Physical damage coverage is another area of coverage that is not required, but very useful. While liability insurance covers only others involved in accidents, physical damage coverage includes you and your property as well. Comprehensive coverage is an example of this. While this does make your insurance payments higher, you can control it with the amount of your deductible. If you want a lower insurance payment, choose a higher deductible. Keep in mind you must be able to pay the deductible in the event of an accident. Vice versa, higher insurance payments will result in lower deductibles. Comprehensive coverage also includes events such as car theft, floods and fires. Collision coverage is also included in physical damage coverage and will cover you in the event you hit a car, are hit by a car, or hit another structure.

Liability insurance and physical damage coverage are two types of auto insurance to consider. While there are other types of insurance available, these categories are the most common.