Tuesday, November 11, 2008

Types of Auto Insurance Coverage - Which Types of Coverage Do You Need on Your Car Insurance Policy

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Types of Auto Insurance Coverage - Which Types of Coverage Do You Need on Your Car Insurance Policy
By Laura Caldwell

When shopping for car insurance it is always a good idea to be informed and to know what you are looking for. One thing you will need to know are the various types of auto insurance coverage available to you.

Here are the main types of coverage.

Bodily Injury Liability Coverage

This coverage is for any injuries sustained to people involved in an accident where you are at fault. This is required by law in every state. Check to see what the minimum requirements are in your state.

Property Damage Liability Coverage

Property damage liability coverage will pay for damages to the other person's vehicle in an accident where you are at fault. This is also required by law in most states.

Personal Injury Protection

Personal injury protection or PIP will cover you, the driver, and your passengers' expenses for injuries sustained when you are in an accident.

Uninsured/Underinsured Motorists Coverage

This will protect you in the event that you are in an accident and the person who is at fault is not insured.

Comprehensive Coverage

This car insurance coverage will pay for damages to your car that are unrelated to an accident. For example, this will cover any damages due to fire, vandalism, or a tree falling on your parked car. If your car is being financed this type of coverage may be required by your lender.

Collision Coverage

Collision coverage will cover any damages to your car when you are in an accident. This type of coverage may also be required by your lender if your car is being financed.

Make sure you know what the car insurance requirements are for your state and which types of coverage you need when shopping for car insurance. Make sure to compare quotes from multiple companies before you decide to buy.

Article Source: http://EzineArticles.com/?expert=Laura_Caldwell



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