What Are The Different Types of Auto Insurance Coverage?

Auto insurance coverage comes in various types and can be purchased separately or together as a package. The most basic form of car insurance is liability coverage, which is required in most states and helps cover the costs of injuries and property damage to others during an accident. 

Other types of insurance, such as comprehensive and collision, provide protection against damage to your car in the event of a crash. Some types of insurance, such as gap insurance, may only be required if you have a leased car. You can inquire with M8 Insurance in Salt Lake City, UT

What the Different Auto Covers Means

Auto insurance policies can differ significantly, so shopping around and discussing your needs and coverage preferences with your insurer is essential. If you own a car, you’ll need some form of coverage to protect other people if you are at fault in an accident. 

If you don’t own a car but drive often, you might want to explore a non-owners policy that offers liability coverage but doesn’t provide a car. If you’re financing a car, you’ll likely need to purchase physical damage coverage, which is usually required. It also covers things like hail damage. 

Liability car insurance is mandatory in every state and covers the costs of injuries or property damage caused by your car. Comprehensive car insurance is an optional form of car insurance that covers a range of unfortunate events not covered by liability car insurance, such as car repair/replacement due to storms, floods, and vandalism. 

Common types of auto insurance are: 

  • Liability coverage
  • Uninsured & underinsured motorist coverage
  • Comprehensive coverage
  • Collision coverage
  • Medical payments coverage
  • Personal injury protection

Bottom Line

To get the best car insurance rate, you need to let your insurer know if you have any high-risk activities. These include frequent travel, hauling hazardous materials, or driving a sports car that can significantly increase your risk. For consultation in Salt Lake City, UT, call M8 Insurance.