Types of Car Insurance Coverage

There is a large variety of car insurance types, so it’s important to understand what’s available and what’s best for you. The most common types of car insurance include: liability, collision, comprehensive, uninsured/underinsured motorist, personal injury protection and medical payments.

Depending on where you live, you are most likely required to have a minimum amount of liability protection, which consists of bodily injury liability and property damage liability. These are designed to help pay for injuries and damages you are responsible for if you cause an accident.

If you live in a no-fault state, these protections are used, in combination with medical assistance insurance, to help pay for your own injuries and damages, regardless of fault.

Full Coverage Car Insurance

If your car is financed or leased, your lender will require you to have full coverage, a combination of liability, collision and comprehensive insurances.

Your friendly neighborhood Acceptance agent understands all the rules where you live and will help you find a policy that meets your needs — and your budget.

The six main types of car insurance include: liability, collision, comprehensive, uninsured motorist, personal injury protection (PIP) and medical payment (MedPay).

Most drivers will have a combination of them. The only state where auto coverage is not mandatory is New Hampshire and drivers there must be able to prove they are financially able to handle injuries and damages out of pocket before they can choose to decline coverage. In Florida, a no-fault state, drivers only need a combination of property damage liability and personal injury protection. In Tennessee, an at-fault state, drivers must carry a basic liability car insurance.

Here is an in-depth look at the 6 most common types of auto insurance.

Liability Car Insurance

Liability auto insurance includes bodily injury liability and property damage liability. Most states require some form of liability insurance. It is designed to help pay for injuries and damages suffered by those involved in a car wreck.

Bodily injury liability kicks in to help pay medical and funeral costs of those injured or killed in a car wreck. Property damage liability helps pay for property damage, such as vehicle repairs or stationary objects like fences or mailboxes damaged by a car accident.

Collision Insurance

Collision coverage can be purchased separately or as part of a full coverage package. It provides insurance for just what its name says it does: Collisions. Whether the collision is your fault or not, this kicks in to help pay for repairs (or replacement) to your vehicle in the event of a collision. That includes with another vehicle or a stationary object such as a tree or mailbox. It also includes a single car rollover. Collision has a deductible.

Comprehensive Insurance

This coverage helps protect you financially when your vehicle is damaged or stolen. It differs from collision coverage in that most events occur when you are not actually driving. The exception is hitting an animal.

Comprehensive coverage provides financial help when your car is damaged from a storm, such as hail or a tree branch falling, vandalism or theft, and other similar events. You can choose the amount you are covered for up to the current market value of the vehicle. This coverage also has a deductible.

Uninsured/Underinsured Motorist Coverage

Many people mistakenly think if they are involved in an accident caused by a driver with insurance, all their injuries and damages will be handled. Many drivers who choose the minimum required liability will not have enough insurance to completely pay for all the damages. That means your recourse will be to take them to court for the rest, which can take a long time and may result in nothing.

Likewise, if you are in an accident caused by a completely uninsured driver, you’ll face the same issues with finding help with your medical and vehicle repair costs. Another scenario is getting in an accident caused by a hit-and-run driver.

Luckily, uninsured motorist coverage (UM) and underinsured motorist coverage (UIM) will pick up the slack for your injuries and damages, regardless of who is at fault. For what it costs, it is a valuable coverage considering 1 in 7 Americans drive without insurance.

Personal Injury Protection (PIP)

Personal injury protection kicks in to help cover medical and other associated costs after an event, such as a car accident. It is not dependent on fault and it is available immediately. It takes the place of bodily injury liability, which can be dependent on the results of an investigation and court case. It is a requirement in some states.

Medical Payment Insurance (MedPay)

Similar to PIP, MedPay is designed to kick in immediately after a covered event to help cover medical bills and other costs related to injuries and death. MedPay is not dependent on fault, so you’ll be able to start collecting it as soon as you need it. Some states require MedPay.

For drivers interested in the maximum protection, there are a variety of optional types of car insurance coverage you can add to your policy.

These optional coverages are not required in any state or by any lender. They can offer you greater protection in certain situations. Ask your friendly Acceptance agent if any of these are right for you.

Many things affect the cost of your policy: Your driving history and age are two of the biggest factors, but in some states, insurers can still use your credit report to decide on your cost. In regards to age, the youngest and oldest drivers typically have higher premiums due to an increased collective risk of claims. Being in a position where it is necessary to purchase coverage based on a less-than-perfect driving record or a DUI conviction is where you’ll need the most help in finding an affordable policy. Here are some common reasons your insurance may be high.

Bad Credit Auto Insurance

Bad credit can affect the price of your policy in certain states. For many years, insurance agencies have pointed to studies that allegedly show people with poor credit file more claims. If your credit is suffering and you live in a state where this practice has not been banned, you may find you are paying more for your policy. There are companies, such as Acceptance, that specialize in finding you affordable insurance even with bad credit.

High Risk Auto Insurance

High risk auto insurance is reserved for drivers who are considered risky to insure. This includes those who are inexperienced, have racked up multiple citations or one DUI, or have a low credit score. High-risk auto coverage is considered non-standard, which means many carriers don’t even offer it. Acceptance specializes in finding this type of insurance for drivers.

Car Insurance for Senior Drivers

Car insurance for senior drivers is tailored to meet the unique needs and circumstances of individuals in their later years. Typically, senior drivers are considered to be those aged 65 and older. It’s important for senior drivers to regularly review their coverage and adjust it as needed to ensure they have adequate protection on the road. As a collective group, older drivers file more claims, meaning insurance agencies may charge more for coverage. Look for an affordable solution with Acceptance.

SR-22 Insurance

SR-22 is considered a type of insurance for high-risk drivers. It’s not an optional coverage and it is also not among the most common types. Drivers convicted of DUI or similar crimes may be required to file an SR-22 certificate with their state to drive. This requirement tells insurers you are risky to insure, and your rates may double or triple with an SR-22 requirement.

At Acceptance, we have plenty of experience handling drivers who have a blemish on their record. Come in and see us or give us a call so we can help you find SR-22 insurance you can afford.

Car Insurance for Teenage Drivers

Car insurance for teenage drivers tends to be more costly compared to other age groups due to the perceived higher risk associated with inexperienced driving. Teenagers, typically aged 16 to 19, are statistically more likely to be involved in accidents, leading insurers to adjust premiums accordingly. Finding a policy you can afford for your new driver can be a struggle, but Acceptance agents are experienced at helping.

Non-Standard Auto Insurance

Non-standard car insurance is for drivers who may have difficulty obtaining coverage through standard insurance companies due to factors such as a poor driving record, previous claims history, or lack of driving experience. Due to these circumstances, insurers feel there is an increased risk with providing coverage for these drivers. This, in turn, means the price of these policies is typically higher. At Acceptance, friendly agents have solutions that will make a difference.

You can add these things to your policy for some extra protection in specific circumstances. They typically do not cost much to add. Some add-ons include:

• Roadside Assistance: This 24/7 protection comes to your aid when you are stranded. You can get towing services, gasoline, a flat tire fix, a battery charge and much more.
• Crossing the Border: Your US insurance is no good when you drive in Mexico and you must buy Mexican car insurance to drive legally.

At Acceptance Insurance, we’ve got you covered no matter what you encounter. Your local agents understand what you need and how to find it without breaking the bank.