Auto insurance is an important part of owning a car. It can protect you financially if you have an accident or if your car is damaged in some other way. There are various types of auto insurance coverage, and it's important to understand what each one covers. In this blog post, we'll take a look at four common types of auto insurance coverage and what they cover. So, whether you're looking to insure your new car or just want to review your existing coverage, read on for everything you need to know about auto insurance.



1. Liability Insurance

Liability insurance is the most basic type of auto insurance. It covers your financial responsibility for damages caused by your car to other people or property. In most states, you're required to have at least a minimum amount of liability insurance. If you cause an accident that results in injuries or damage to another person's property, your liability insurance will help pay for the costs.

There are two types of liability insurance: bodily injury liability and property damage liability. Bodily injury liability covers medical expenses and other damages caused by your car to another person. Property damage liability covers damage to another person's property, such as their car or home.

2. Collision Insurance

Collision insurance covers damage to your car caused by an accident with another car or object. It will help pay to repair or replace your car if it's damaged in a collision. If you have a loan or lease on your car, you may be required to have collision insurance. Even if you don't have a loan or lease, collision insurance can be a good idea if you want financial protection in case of an accident.

3. Comprehensive Insurance

Comprehensive insurance covers damage to your car caused by things other than a collision. This can include damage from events such as theft, vandalism, fire, or weather. Like collision insurance, comprehensive insurance is not required if you have a loan or lease on your car, but it can be a good idea to have. Comprehensive and collision insurance are sometimes referred to as "full coverage" because they provide protection against a wide range of potential damages.

4. Uninsured/Underinsured Motorist Coverage

Not all drivers have auto insurance. Even those who do may not have enough. This is where uninsured/underinsured motorist coverage comes in. This type of insurance will help pay for damages caused by an uninsured or underinsured driver. It can also provide protection if you're hit by a hit-and-run driver.

The typical driver makes a vehicle accident claim once every 17.9 years, according to Forbes. For those who start driving at 16, it means that they may be involved in up to three accidents throughout their life. As such, it's important to be financially prepared in case you're ever involved in an accident. The best way to do this is to have auto insurance. Call Ramsey Family Insurance today to get a quote on the auto insurance coverage that's right for you.