What kind of insurance do i need for my car

Unlike PIP, medical payments coverage is usually optional. This type of coverage is usually required if you lease or finance your car. If your car is paid off, collision insurance is usually optional.

The cost of collision coverage varies by state and insurer, and depends on the deductible you choose. Comprehensive coverage helps pay for damage or loss that results from something other than a collision. This includes theft, vandalism, fire, falling objects, earthquakes, windstorms and hail.

It can also protect you against damage from animals like birds or deer. Like collision coverage, comprehensive insurance is usually optional if you own your vehicle but will likely be required if you lease or finance your car.

Depending on your needs and financial situation, you may want to add other optional coverage to your insurance policy. Rental reimbursement coverage helps you pay for alternative transportation, like a rental car or public transportation, while your vehicle gets repaired. How much your policy will pay out depends on the types of car insurance you buy and the limits you choose. Easily compare personalized rates to see how much switching car insurance could save you.

Most auto policies include several types of car insurance coverage, each designed to pay for different expenses. Each type of coverage has a limit — the maximum your policy will pay. While minimum car insurance requirements vary by state, the main types of insurance coverage you could be required to get are:. Liability insurance , which pays for expenses due to an accident you cause.

Uninsured and underinsured motorist coverage to pay for damage from drivers without car insurance, or without enough to pay for damage they cause. How your car insurance works depends on the coverage you buy. Take a look below at the main types of car insurance coverage and how they work; then read on for more details and real examples. Medical costs due to injuries or deaths from an accident you caused, and repair costs for property you damaged.

Medical and repair costs after an accident with an uninsured driver. Expenses from an accident with a minimally insured driver. Repair expenses from traffic-related accidents, regardless of who is at fault. Repair costs from events outside your control — including weather events, hitting an animal while driving, theft and vandalism. Medical expenses for you and your passengers after an accident regardless of fault. Personal injury protection insurance.

Medical expenses, as well as lost wages, child care, funeral costs and other losses due to an accident regardless of fault. If you cause a car accident, liability auto insurance will cover the cost of any subsequent damage, injuries or deaths. All states, except New Hampshire and Virginia, require this coverage. There are two types of liability coverage for auto policies:. You can follow her on Twitter rachaelbwriter.

By Rachael Brennan. Reviewed by Mark Fitzpatrick. Key Takeaways. Need More Personal Finance Cowbell? Is Car Insurance Required? State Min Liability-Only. Collision: Collision insurance pays for damages to your vehicle when you are at fault in an accident. If you have a loan on your car, your lender may require active collision insurance on your policy. Hail damage, theft and fire damage are just a few examples of what would be under this comprehensive insurance coverage.

This does not supersede your per person maximum, however. Will You Need Gap Insurance? What Other Coverages Are Offered? Rental Reimbursement: Rental reimbursement pays for your rental car while your car is in the repair shop because of an insured loss. Every U. But those state minimums are not nearly enough to protect you. Comprehensive coverage protects you from things like theft or damage from a fire, a storm, a natural disaster or even a tree branch falling on your car.

So, do you need collision? The only time you might not need collision is if your car is paid off and, again, you could replace it from your savings. Depending on where you live, MedPay is a requirement. Personal injury protection PIP is similar to MedPay but has more extensive coverage, higher coverage limits and a higher premium. Here are some things PIP may cover for you:. Though it varies from state to state, PIP usually offers immediate coverage up to the limit set by your auto insurance and would need to be used up before you have to tap into MedPay or your own health insurance policy.

With the cost of new cars continuing to climb, the average length of a car loan has expanded to six years or more, making GAP insurance more popular than ever. Our recommended auto insurance coverage? Skip GAP insurance and save yourself a financial headache by buying a used car with cash in the first place.

If you already have a car loan, make it your goal to pay it off as quickly as possible so you can drop the GAP coverage and lower your premium. Temporary car insurance is another type of coverage you should know about. Instead, it comes in the form of non-owner car insurance or rental car insurance. Our advice? Save your money and skip this coverage. So, how exactly do you make do without a car after an accident? It covers the cost of a rental car up to a specific dollar amount and number of days while your car is in the shop.

If your car tends to sit in the garage collecting dust, you may be interested in pay-per-mile coverage. Or that time you hit a pothole and were left with two flat tires?