6 Types of Auto Insurance You Didn't Know You Needed

Getting auto insurance can be a confusing process, and it’s easy to feel like you’re buying something that you don’t really need. However, there are different types of auto insurance that all drivers should know about and understand, so read on if you want to learn the basics of 6 types of auto insurance you didn’t know you needed!

1) Comprehensive and Collision

Collision insurance covers damage to your car caused by an object, such as another vehicle. Comprehensive insurance covers any other damage not associated with a collision. Comprehensive insurance may be needed if you live in an area prone to flooding, for example, or if you have expensive electronic equipment installed in your car that is easily damaged by thieves.

2) Bodily Injury Liability

In most states, you have to have Bodily Injury Liability insurance, which covers injuries or damage you cause other people in your car. Your auto insurance company will cover any payments that exceed your deductible amount if you're found responsible for an accident. Most states also require uninsured and underinsured motorist Bodily Injury Liability insurance—this protects you in case someone else is at fault and doesn't have enough insurance to cover your expenses.

3) Property Damage Liability

Sometimes, even if you do everything right, others won’t. Uninsured motorist insurance protects you and your family if you’re hit by someone who has no auto insurance, underinsured insurance or doesn’t have enough insurance to cover your medical bills and lost wages. If someone doesn’t carry auto insurance at all, chances are they don’t care about paying for repairs to your vehicle—it could be a good idea to invest in uninsured motorist insurance as soon as possible.

4) Uninsured Motorist Insurance

If you’re ever in a car accident with an at-fault driver who doesn’t have auto insurance, uninsured motorist insurance will pay to repair or replace your vehicle. In many states, it can also cover medical expenses, lost wages and other damages. But since these benefits are not guaranteed by law in every state, they are often seen as optional—but that doesn’t mean you shouldn’t get them if offered through your insurer.

5) Underinsured Motorist Insurance

As mentioned earlier, underinsured motorist insurance is a type of insurance that many drivers choose to add onto their auto insurance policies. This type of insurance protects you if you are involved in an accident with another driver who is at fault but cannot afford to pay for all damages to your vehicle. Underinsured motorist insurance will protect you from having to pay out-of-pocket for these damages. It’s important that drivers have this protection because car accidents can be incredibly expensive.

6) Medical Payments (Med Pay)

Also known as no-fault or personal injury protection (PIP) insurance, medical payments insurance is required in Florida and covers costs for your injuries (to you and your passengers) no matter who was at fault. Medical Payments (Med Pay) insurance is not available in every state, so if you are moving to a new state and want Med Pay insurance, check with your auto insurance agent to make sure it's available in that state.

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