What Type of Insurance Coverages Are Available for Your Car?


    Several types of insurance coverages are available for your car, each serving different purposes. Liability insurance is typically mandatory and covers damages and injuries you cause to others in an accident. Collision insurance pays for repairs to your car if you’re in an accident, regardless of fault. Comprehensive insurance covers non-collision damages such as theft, vandalism, or natural disasters. Uninsured/underinsured motorist coverage protects you if the at-fault driver doesn’t have enough insurance. Personal injury protection (PIP) covers medical expenses for you and your passengers, regardless of fault. Finally, there’s gap insurance, which covers the difference between what you owe on a car loan and the car’s actual value if it’s totaled. Choosing the right mix of coverages depends on your budget, the value of your car, and your risk tolerance.