Different Types of Auto Insurance Policies

There are many types of auto insurance policies. Trying to figure out which ones you need? We curated this list to help you make the right choices.

Liability Coverage

Auto liability coveage is a legal requirement in the majority of states. If you’re at fault in an accident, it helps cover the other driver’s expenses. There are two types of liability coverage:

• Bodily injury liability may help cover the medical expenses of the other person’s injuries

• Property damage liability may help cover the repair costs to the other person’s property (Vehicles, buildings, etc.)

Uninsured and Underinsured Motorist Coverage

This coverage helps when you’re hit by a driver who doesn’t have insurance or doesn’t have enough coverage.

• Uninsured motorist coverage covers expenses caused by an uninsured driver hitting you.

• Underinsured motorist coverage covers expenses caused by a driver hitting you whose policy doesn’t cover all injuries or damage they incurred.

Only some states require a minimum of uninsured or underinsured motorist coverage.

Comprehensive Coverage

Comprehensive coverage helps pay for expenses when your vehicle is damged by things other than a car accident. This includes things like storms, falling objects, theft, and more.

Collision Coverage

Regardless of who was at fault, this coverage can help pay to repair or replace your car when you hit another vehicle, or even objects such as a tree or fence. This coverage is usually optional.

Medical Payments Coverage

This helps cover medical bills such as hospital visits and rehabilitation as a result of an accident.

Personal Injury Protection

Personal injury protection (PIP) insurance, like medical payments coverage, can help cover medical expenses due to an accident. Additionaly, however, it can also help cover other costs such as lost income, funeral costs, or child care. PIP is also known as n-fault insurance.

In some states PIP is a requirement, in others it’s optional, and in some it’s not available.

Gap Insurance

If your leased vehicle is stolen or totaled, and it has not been paid off, this coverage will help pay the difference be what the car is worth and what’s left on your loan. Leasing companies typically require you to have gap insurance.

Still have questions? Centro Hispano is always here to help! Call us today and one of our agents will gladly assist you.