11 Car Insurance Coverage Types

Hey, road warriors, buckle up. We’re driving into the wild world of car insurance coverage types. Whether cruising down Route 66 or stuck in bumper-to-bumper traffic, having the right car insurance is as essential as having gas in the tank. Stick around, and we’ll breakdown the different types of car insurance so you can hit the road with peace of mind and a pocket full of savings.

---

MoneyLion can help you explore auto insurance options tailored to different needs and preferences.

---

11 types of car insurance coverage

Choosing the right types of car insurance coverage can feel like navigating a maze. But don’t worry, we’ve got your back. Here’s a breakdown of the key coverages you should know about.

1. Liability coverage (required in most states)

Liability coverage is your financial safety net if you’re at fault in an accident. It covers the other party’s medical expenses and property damage, which can save your bank account from taking a hit.

2. Bodily injury liability (required in most states)

This is a subset of liability coverage. Bodily injury liability pays for injuries you cause to others in an accident. Protecting yourself from hefty medical bills and legal fees is a must-have.

3. Property damage liability (required in most states)

Another slice of liability coverage, property damage liability covers the cost of damage you cause to someone else’s property. Consider it your safeguard against those “Oops, I hit your car” moments.

4. Rental reimbursement 

Ever had your car in the shop and no wheels to get around? Rental reimbursement covers the cost of a rental car while your vehicle is being repaired after a covered accident. No more bumming rides off your friends.

5. Collision coverage

Collision coverage pays for damage to your car from a collision, whether with another vehicle or a stationary object like a tree or a guardrail. It’s like having a safety cushion for your car.

6. Comprehensive coverage

Think of comprehensive coverage as an all-encompassing shield. It covers damage to your car from non-collision incidents like theft, vandalism, natural disasters, and hitting a deer. If it’s not a crash but still a smash, comprehensive has you covered.

7. Medical payments coverage

Medical payments coverage, or MedPay, handles your medical expenses if you’re injured in a car accident, regardless of who’s at fault. It’s your quick-pass to getting those hospital bills taken care of.

8. Uninsured or underinsured motorist coverage

This coverage steps in if you’re hit by a driver with no insurance or not enough insurance. Uninsured or underinsured motorist coverage ensures you’re not left footing the bill for someone else’s mistake.

9. Gap insurance

If your car is totaled and you owe more on your loan or lease than the car’s current value, gap insurance bridges that gap.Which can be a lifesaver for those underwater loans. 

10. Roadside assistance coverage

Stranded on the side of the road with a flat tire or dead battery? Roadside assistance coverage gets you back on the road with services like towing, jump-starts, and tire changes.

11. New car replacement coverage

Drive a new car? New car replacement coverage ensures that if your new car is totaled, you can get enough money to buy a brand-new one, not just the depreciated value.

How to compare car insurance types

Comparing auto insurance types is crucial for finding the best coverage at the best price. Look at what each policy covers, the cost of premiums, deductibles, and any additional benefits. This comparison helps you tailor a policy to your needs, ensuring you get the most bang for your buck.

Mastering your car insurance choices

Navigating through the different car insurance types doesn’t have to be a chore. By understanding each type and comparing them, you can make an informed decision that suits your lifestyle and budget. Remember, the right coverage can save you money and stress.

FAQ