The Major Types Of Car Insurance Explained
When it comes to car insurance, there are a few things you need to know in order to get the best policy for yourself and your vehicle. In this article, we will cover the three main types of car insurance, and explain what you need to know about each one.
Collision
When you get into a car accident, it is important to know the different types of car insurance in order to protect yourself. Here are the four main types of car insurance: property, liability, comprehensive, and uninsured motorist.
Property insurance protects your vehicle (and any belongings inside) from damage or theft that occurs while it is in your possession. This type of insurance covers damage done to other vehicles, people, or property as a result of the accident. Liability insurance helps cover the costs associated with injury or wrongful death that occurs during the accident. This type of insurance helps pay for damages sustained by the other driver, passengers in the other car, and any bystanders. Comprehensive coverage provides additional protection beyond what is offered by liability and property insurance. This type of coverage includes coverage for injuries caused by things like weather conditions and animals on the road. Uninsured motorist coverage helps protect you if someone else is at fault for an accident and does not have proper car insurance. This type of insurance can help pay for damages that occur to your car and/or injuries you may suffer as a result of the accident.
There are many factors to consider when choosing which type of car insurance is right for you.
Comprehensive
In the world of car insurance, there are a few different types to choose from. This article breaks down the different types so you can understand what each offers and what might be best for you.
Comprehensive coverage is the most basic type of insurance and protects you financially in the event that you are involved in an accident. It includes coverage for property damage, bodily injury, and death. This type of policy is often recommended for people who only drive occasionally or for those who don’t have any other forms of insurance. Comprehensive policies are also available as add-ons to other types of policies, such as liability or collision.
A liability policy covers you if someone is injured or killed while using your car. This type of policy is good for people who use their cars for work or personal transportation. A collision policy covers damages to your car that occur as a result of an accident with another vehicle. These policies are good for people who use their cars for shopping or commuting.
Uninsured motorist coverage provides protection if you get into a car accident with someone who does not have insurance. Uninsured motorist coverage can also protect you if someone drives without a license or registration.
Property
There are three types of car insurance: liability, collision, and comprehensive. Each type comes with its own benefits and drawbacks. Let’s take a closer look at each one.
Liability coverage protects you from financial damages you may cause to others as a result of your negligence. This coverage is important if you own or operate a business that could be impacted by a car accident. Collision coverage covers damage to your car caused by another vehicle. This coverage helps to cover costs associated with fixing the car, such as rental cars, loss of income, and medical expenses. Comprehensive coverage provides additional protection beyond what collision and liability coverage offer. This coverage can protect you from theft, damage to your car caused by natural disasters like floods or hurricanes, and damage caused while the car is inoperable due to a mechanical issue.
Each type of insurance has its own set of benefits and drawbacks. For example, liability insurance can protect you financially if you are found liable for an accident, but it may not cover all of the costs associated with an accident, such as rental cars or lost wages.
DUI/DWI
DUI or DWI stands for driving under the influence. It is a criminal offense to operate a motor vehicle while impaired by alcohol or drugs. If you are caught driving with a blood alcohol content (BAC) of 0.08% or more, you are guilty of DUI. A BAC of 0.08% is considered impaired and can lead to serious penalties, including jail time, fines, and license suspension.
There are three types of DUI: misdemeanor, felony, and gross misdemeanor. misdemeanor DUI carries a maximum penalty of one year in jail and a $2000 fine; felony DUI carries a maximum penalty of 6 years in prison and a $250,000 fine; and gross misdemeanor DUI carries a maximum penalty of one year in jail and a $5000 fine.
If you have been convicted of DUI, your car insurance will likely increase significantly. This is because car insurance companies use factors such as your criminal history and driving record to determine your rates. In most cases, you will be required to carry minimum liability insurance coverage regardless of your car insurance company’s policy limits.
Auto Theft
There are a few types of car insurance that protect drivers from theft or damage to their vehicle.
The most common type is liability insurance. This insurance covers you if someone is injured or property is damaged as a result of your negligence. This coverage can be important if you have a history of driving without proper insurance or if you are driving an uninsured car.
Collision coverage provides protection from accidents with other vehicles, and comprehensive coverage protects your vehicle from all types of damage, regardless of who was at fault. If you're ever involved in a serious accident, this type of insurance can help cover your costs.
Some people choose to buy additional types of coverage, such as uninsured motorist coverage or theft protection, in order to fully protect themselves. No matter what type of car insurance you buy, be sure to read the policy carefully and understand the terms and conditions so that you're fully protected in case of an accident.
Conclusion
In today's world, it is important to have comprehensive car insurance in case of an accident. Here are the three main types of car insurance and what they cover.