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Primary Types of Car Insurance Coverage
Most states require some form of liability insurance. Other types of coverage (such as comprehensive and uninsured/underinsured motorist) may be optional. Here are the primary types of car insurance coverage to consider when shopping for a car insurance policy:
- Liability coverage: Covers the cost of another person’s injuries if the driver is at fault
- Property damage liability: Covers the cost of damage done to another person’s property while driving
- Uninsured and underinsured motorist: Covers costs of the driver’s injuries if caused by someone without auto insurance
- Collision coverage: Covers vehicle damage if the driver collides with another vehicle or object
- Comprehensive coverage: Covers vehicle damage from fire, weather, theft, and other causes
- Medical payments: Covers treatment expenses for the driver and passenger
- Personal injury protection (PIP): Covers medical costs, lost wages, and funeral expenses
- Excess medical payments: Covers costs that exceed the coverage limits of PIP coverage
You’ll notice full coverage insurance isn’t on this list. That’s because it isn’t a type of coverage. Instead, full coverage is a combination of three types of insurance: liability, comprehensive, and collision. If your lender requires you to have full coverage on a vehicle you’re financing or leasing, you need to carry state-mandated coverage plus comprehensive and collision.
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