Types of Auto Insurance Coverage Explained
When it comes to auto insurance, understanding your options is crucial for ensuring you’re adequately covered in various scenarios. Below is a breakdown of the key types of auto insurance coverage you might consider.
7 Types of Auto & Car Insurance Coverage
1. Bodily Injury Liability Coverage
This insurance helps safeguard you from financial losses if you injure someone in an accident. It pays for medical treatment and is legally required in most states.
2. Property Damage Liability Coverage
This type of coverage pays for damage your car inflicts on someone else’s property, such as another vehicle, fences, or mailboxes. It is also mandated by law in most states.
3. Collision Insurance Coverage
Collision insurance covers the cost of repairs to your car if you hit another vehicle or object. While not required by law, lenders often require you to carry this coverage if you have a car loan.
4. Comprehensive Coverage
Comprehensive insurance helps pay for non-collision-related damage to your car, such as damage from natural disasters, theft, or vandalism. Lenders may require this coverage for financed cars, even though states do not.
5. Uninsured / Underinsured Motorist Coverage
Also called UM and UIM policies, this policy provides coverage if you’re hit by a driver who either doesn’t have insurance or whose insurance is insufficient to cover the costs. The requirements for this type of coverage vary by state.
6. Medical Payments Coverage
An optional add-on, this covers medical expenses for you and your passengers, regardless of who is at fault in an accident. It applies even if the accident occurs in another state.
7. Personal Injury Protection (PIP)
Also known as no-fault insurance, PIP covers medical expenses and other losses, such as lost wages and funeral costs, no matter who is at fault in the accident. Requirements for this coverage vary by state.
Additional Coverage Options:
Full Glass Protection
This optional coverage covers the cost of repairing or replacing any glass components of your car without requiring a deductible.
Towing Assistance
Another optional add-on, this pays for towing and labor costs if your car breaks down.
Personal Umbrella Policy
This extends your liability coverage, providing extra protection if a claim exceeds the limits of your standard auto and home insurance policies.
Gap Coverage
Gap insurance covers the difference between your car’s actual cash value and the amount you still owe on your loan if your car is totaled.
Rental Vehicle Reimbursement
Optional and helpful, this coverage pays for a rental car if your vehicle is being repaired due to a covered loss.
Rental Vehicle Insurance Coverage
If you’re renting a car, it’s crucial to know whether your existing auto insurance policy covers the rental. You can also opt for a collision damage waiver from the rental company.
How QuoteDesign Can Help Any Driver
At QuoteDesign, we offer access to all these types of auto insurance coverage to Redmond and Eagle Crest, Oregon drivers. Understanding your needs is our priority, and we strive to provide you with tailored insurance solutions that offer both value and peace of mind. Feel free to contact us for a customized quote that aligns with your requirements.
In Oregon? Learn about Oregon auto insurance requirements!
