7 Common Types Of Auto Insurance Coverage To Keep You Safe

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Every year in the United States there are approximately 6 million car accidents. The reason you are required by law to have car insurance is simple: it protects you, your passengers, and other drivers from the financial burden that follows a car crash. That said, you aren’t typically required to carry a very thorough insurance plan, and not having appropriate coverage could land you in a world of hurt. Here are some of the options you have for auto insurance coverage.

    1. PIP Coverage
      PIP is an acronym that stands for personal injury protection, also known as no-fault coverage. In effect, this means that accident victims can receive benefits no matter who was at fault for the accident. Thirteen states, including North Dakota, require drivers to carry PIP insurance coverage. In the event of an auto accident, PIP can cover both medical expenses as well as lost wages.


    1. Comprehensive
      This kind of coverage is essentially ‘act of god’ insurance, meaning that anything unforeseeable and faultless on your end is covered. This could be hitting a deer, car theft, natural disasters, falling trees, or spontaneous fire.


    1. Collision Coverage
      Collision policies cover damages to your own car when you’ve been found at fault for an accident. Without collision protection, you will have to pay out of pocket for repairs to your car if you caused the accident.


    1. Roadside Assistance
      If your vehicle breaks down on the side of the road, this coverage will allow you to call a tow truck, jump start, or lockout service for free.


    1. Rental
      If your car is in the shop or not running due to an accident that’s covered by your insurance, you can be reimbursed for a rental car with this coverage option.


    1. Glass
      Glass coverage is typically an add-on option that covers windshield breaks and other common glass problems. This might already be covered by comprehensive policies depending on your area and insurance company.


  1. Liability Insurance
    Liability coverage is the one of the few types of insurance coverage required by law in many states. Liability insurance covers another driver, passenger, or pedestrian’s medical costs, car damage, lost wages, and other types of damages if you are found at fault in a car accident. Because personal injury and auto repair costs can be financially devastating after a major accident, liability coverage can save you from total financial ruin.

As much as you might want to avoid paying for auto insurance, it is incredibly important that you have the level of coverage you need to keep you and other drivers safe. Driving can be quite dangerous, but auto insurance takes some of the uncertainty away from even the scariest driving situations.