{"id":489,"date":"2024-02-23T05:43:11","date_gmt":"2024-02-23T05:43:11","guid":{"rendered":"https:\/\/www.acceptanceinsurance.com\/?page_id=489"},"modified":"2024-08-13T19:20:26","modified_gmt":"2024-08-13T19:20:26","slug":"types-of-car-insurance","status":"publish","type":"page","link":"https:\/\/www.acceptanceinsurance.com\/our-products\/auto-insurance\/types-of-car-insurance\/","title":{"rendered":"Types of Car Insurance Coverage"},"content":{"rendered":"
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What are the Main Types of Car Insurance?<\/h2>\n
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There is a large variety of car insurance<\/a> types, so it\u2019s important to understand what\u2019s available and what\u2019s best for you. The most common types of car insurance include: liability, collision, comprehensive, uninsured\/underinsured motorist, personal injury protection and medical payments.<\/p>\n

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.<\/p>\n

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.<\/p>\n

Full Coverage Car Insurance<\/h3>\n

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

Your friendly neighborhood Acceptance agent understands all the rules where you live and will help you find a policy that meets your needs \u2014 and your budget.<\/p>\n <\/div>\n \n\n \n \n \"\"\n

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Car Insurance Glossary<\/h2>\n
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Lean more about terms and definitions that are commonly used in insurance.<\/p>\n <\/div>\n <\/div>\n <\/a>\n \n\n\n

What are the 6 Key Types of Car Insurance?<\/h2>\n
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The six main types of car insurance include: liability, collision, comprehensive, uninsured motorist, personal injury protection (PIP) and medical payment (MedPay).<\/p>\n

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.<\/p>\n

Here is an in-depth look at the 6 most common types of auto insurance.<\/p>\n

Liability Car Insurance<\/h3>\n

Liability auto insurance<\/a> 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.<\/p>\n

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.<\/p>\n

Collision Insurance<\/h3>\n

Collision coverage<\/a> 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.<\/p>\n

Comprehensive Insurance<\/h3>\n

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.<\/p>\n

Comprehensive coverage<\/a> 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.<\/p>\n

Uninsured\/Underinsured Motorist Coverage<\/h3>\n

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.<\/p>\n

Likewise, if you are in an accident caused by a completely uninsured driver, you\u2019ll 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.<\/p>\n

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<\/a>.<\/p>\n

Personal Injury Protection (PIP)<\/h3>\n

Personal injury protection<\/a> 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.<\/p>\n

Medical Payment Insurance (MedPay)<\/h3>\n

Similar to PIP, MedPay<\/a> 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\u2019ll be able to start collecting it as soon as you need it. Some states require MedPay.<\/p>\n <\/div>\n \n\n

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What are Some Additional Types of Insurance?<\/h2>\n
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For drivers interested in the maximum protection, there are a variety of optional types of car insurance coverage you can add to your policy.<\/p>\n <\/div>\n \n\n

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Types of Additional Coverages<\/th>\n What They Do<\/th>\n <\/tr>\n
Gap Insurance<\/td>\n Pays the difference between what your car is worth and what you owe in the event of a total loss.<\/td>\n <\/tr>\n
Rental Car Reimbursement<\/td>\n Helps pay for a rental car while your vehicle is in the shop for a covered event. Bridges the gap between what your insurer pays and what you are charged.<\/td>\n <\/tr>\n
New Car Replacement<\/td>\n Only available for cars less than 2 years old. Pays for a brand new equitable car in the event of a total loss.<\/td>\n <\/tr>\n
Non-Owner Car Insurance<\/td>\n A cheaper option for people who use someone else\u2019s car or who rent on a routine basis.<\/td>\n <\/tr>\n
Classic Car Insurance<\/td>\n Covers cars considered vintage or antique. Costs less than regular car insurance.<\/td>\n <\/tr>\n <\/table>\n <\/div>\n <\/div>\n\n\n
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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.<\/p>\n <\/div>\n \n\n\n

What Can Affect the Price of My Car Insurance?<\/h2>\n
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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<\/a> is where you\u2019ll need the most help in finding an affordable policy. Here are some common reasons your insurance may be high.<\/p>\n <\/div>\n \n\n

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Ready to Get a Quick Quote? <\/h2>\n
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