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Auto Insurance Tracker: Understanding Your Car Insurance Options
What is Car Insurance?
Car insurance is an agreement between an insurance company and a driver that provides financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle. It can also include other miscellaneous coverages such as medical payments, uninsured motorist protection, and personal injury protection.Types of Insurance Plans for Your Car
When it comes to buying car insurance, it’s important to understand the different types of coverage available. Here are the five main categories of car insurance:- Liability Insurance: Liability coverage pays for damages or injuries that you or another driver cause to another person or their property. It includes bodily injury liability and property damage liability.
- Collision Insurance: Collision coverage pays for damages to your vehicle caused by an accident, regardless of who is at fault. This coverage is usually required if you have an auto loan.
- Comprehensive Insurance: Comprehensive coverage pays for damages to your vehicle caused by something other than an accident, such as theft, vandalism, fire, or hail. It also covers some types of animal collisions.
- Uninsured Motorist Protection: Uninsured motorist protection pays for damages or injuries you or your passengers sustain from an accident caused by an uninsured driver or a driver with insufficient insurance.
- Medical Payments: Medical payments coverage pays for medical expenses for you and your passengers after an accident.