What Are The Different Kinds Of Car Insurance?

car-insurance-typesOverall, there are three main types of car insurance – PIP (personal injury protection) and liability, comprehensive, and collision. PIP and liability is the type of insurance that most states require by law. There are still a few states that don’t require you to insure your vehicle, but there aren’t very many of them. People who do have insurance in these states often pay more, too, because the insurance companies know the chance of claims is higher when there are so many uninsured drivers on the road. PIP and liability covers medical bills and the damage that’s done by you to the property of others in a collision.

Comprehensive covers issues like fire, theft, and glass breakage, and it’s not required unless your vehicle is financed, but it’s still a good idea just in case. Collision only covers collisions, but it will pay to fix your car regardless of fault. If you don’t have it and the other driver is uninsured, paying to fix your car is your responsibility. That can be exceedingly costly – much more so than the price of the insurance.

Like comprehensive, collision insurance isn’t required unless you have your vehicle financed, but it’s still a good idea to have unless your vehicle is very old and/or worth very little.

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