Types of Car Insurance
There are several types of car insurance, each with its own level of coverage and cost.
Liability Insurance
Liability insurance is the minimum amount of car insurance required by law in many countries. It covers damages or injuries you cause to others in an accident.
This includes bodily injury and property damage. Liability insurance does not cover your own injuries or damage to your car.
Collision Insurance
Collision insurance covers damage to your own car in the event of an accident. It pays for repairs or replacement of your car if it is damaged in a collision.
Collision insurance is not required by law, but it may be required by your lender if you have a car loan.
Comprehensive Insurance
Comprehensive insurance covers damage to your car from non-collision events such as theft, vandalism, and natural disasters. It also covers damage caused by collisions with animals. Comprehensive insurance is not required by law, but it may be required by your lender if you have a car loan.
Personal Injury Protection
Personal injury protection (PIP) covers your medical expenses and lost wages in the event of an accident. PIP is required by law in some states, while in others it is optional.
