There are different kinds of auto insurance that drivers can choose from. In the U.S., auto insurance is required and can't be skipped. But drivers can choose from a number of different insurance plans that give them the cost and coverage options they want from their insurance company. Not all insurance companies offer the different types of coverage, so you need to check with your company to find out what they can and can't offer you.
Liability coverage from an auto insurance company will pay for damage you cause to other drivers. Liability coverage comes in a few different forms. First, bodily injury liability will pay for someone else's medical bills or funeral costs if you are found to be at fault for an accident that hurts them. If someone who was hurt in an accident sues you because of it, liability coverage can help you defend yourself in court. You will need liability insurance to make sure that if someone sues you, you have enough insurance to pay the judgement without using your own money or assets.
Property damage liability pays for the cost of fixing or replacing someone else's damaged property if it can be shown that the accident was your fault. Comprehensive and collision coverage is a type of insurance that will cover the cost of fixing or replacing your car in the event of an accident. In some cases, the coverage will also pay for a different car if you aren't driving your own at the time of the accident.
Comprehensive insurance can also cover the cost of your car if it is stolen, damaged by animals, a fire, or a flood, or if it is damaged by a natural disaster. Specific coverage is limited by the terms and conditions in your insurance policy. Because of this, people should check with their insurance company to find out more about their policy.
Underinsured motorist property damage covers the cost of repairs when the person who caused the damage has insurance but not enough to pay for all of the damage. Underinsured motorist bodily damage pays for your medical bills and those of your family members and other people in your car if the other driver's insurance doesn't cover the full amount. Uninsured property damage protects a person's car if they are in an accident with a driver who isn't paying attention and doesn't have insurance.
Uninsured motorist bodily injury protects insurance policy holders, members of their household, and passengers in their car from the costs of medical care or death. If a driver with no fault doesn't have insurance, this policy will help. Only 12 states in the US offer no-fault insurance, which covers the policy holder no matter who caused the accident. This means that your own insurance will pay for damage to your car or to you, even if you were the careless driver.
