BASIC TYPES OF CAR INSURANCE COVERAGE

The following is an introduction to the basic types of car insurance coverage and the specific costs that each type addresses. What this doesn't describe however, are the specific costs for each and every car insurance coverage available in the United States. The policy specifics of one type of car insurance coverage in one state could vastly differ from the policy specifics offered in another state even though the basic type is the same. So keeping this in mind, this introduction will provide a general overview of what is considered customary while acknowledging that variations are to be expected and reinforced.

Among the choices is one of the most important: liability car insurance coverage. Liability car insurance coverage is so important in fact, that it should be the choice before all others because it basically covers expenses incurred by an injured party and because it's usually the least expensive to buy. Full coverage on the other hand is more expensive, however it not only covers expenses incurred by an injured party, it also covers expenses incurred by its holder.

With bodily-injury liability car insurance coverage for example, the driver at fault is protected against the health claims of an injured party. Many states require this type of car insurance coverage however the coverage that it provides by and large too low.

Property-damage car insurance coverage will pay for car damage and damages to real property (possessions in a car, a house, utility poles, etc.) and it is also required in many states.

Uninsured-motorist car insurance coverage will pay for injuries incurred by a driver and passengers involved in a hit-and-run accident or costs incurred by an uninsured motorist. Also required in many states, this type of car insurance coverage does not cover property damage unless state provisions allow it.

Collision car insurance coverage and comprehensive car insurance coverage are similar in that they both will pay the cost of repairing a damage car or replacing it completely. However Collision car insurance coverage alone isn't effective unless it's used in conjunction with Comprehensive car insurance coverage.

Medical-payments car insurance coverage pays medical costs for the driver and passengers regardless of who's at fault. But unlike bodily-injury car insurance coverage, this coverage is available without involving the legal system.

Towing car insurance coverage will cover the costs of towing or performing minor repairs on a car. It isn't required by any state, but it is recommended. A good example of a service that provides this type of car insurance coverage is Triple AAA or some other type of similar auto club that provides towing.