Different Types of Auto Insurance Coverage - What You Should Know

You know you need car insurance, but do you* Uninsured and underinsured motorist coverage,
really know what the different types of autowhich pays if you're hit by a driver who doesn't
insurance coverage are? How much car insurancehave enough insurance.
you need? Or how you can find the best rate on* Towing and rental coverage, which pays if you
car insurance? Here's a simple guide that answershave a breakdown and need to have your vehicle
those questions.towed and if you need to rent a vehicle while
What are the different types of auto insuranceyours is being repaired.
coverage?How much insurance do I need?
Car insurance protects you against financial loss ifMost states have minimum insurance
you have an accident or your car is stolen. A carrequirements for liability insurance. You can check
insurance policy can include several different typesyour state's department of insurance website to
of coverages:find out what the minimum requirements are for
* Bodily injury liability, which pays for injuries thatyour state. Note, though, that you may want to
you cause someone else.buy higher limits of coverage.
* Property damage liability coverage, which paysCollision or comprehensive coverage is not
for damage that you cause to someone else'srequired by state law, but if you're buying a new
property.car your lender may require it.
* Medical coverage, which pays the cost ofHow do I find the best rate on car insurance?
treating your injuries, or those of yourTo save time and money when you shop for car
passengers, after an accident.insurance, go to an insurance comparison website
* Collision coverage, which pays for damage towhere you can compare quotes from multiple
your car caused by flipping over or colliding withinsurance companies. As an added benefit, the
another car or an object.best insurance comparison websites have
* Comprehensive coverage, which pays you ifinsurance professionals on hand to answer your
your car is stolen or damaged by somethingcar insurance questions. (See link below.
other than a collision.