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What Are the Different Types of Car Insurance?

Car insurance is something that every driver should have. Not only does it protect your assets in case of an accident, but it can even cover medical bills and damage to your personal items. Insurance comes in varying coverages and some are optional. If you own a vehicle in Colorado, however, liability insurance is automatically required.

Learn more about the most common types of car insurance and what they cover in this brief overview.

The top six car insurance coverages

In the state of Colorado, every car owner must at least carry liability insurance. This is a baseline coverage, however, and most drivers have insurance policies through an insurance agency that covers way more than just injury and property damage. There are six common types of insurance available with varying degrees of coverage. These include:

Comprehensive: Comprehensive coverage covers many losses to your vehicle and personal property that are not caused by an accident with another vehicle. This includes damage from hitting an animal, theft, and damage from fire or weather. Window replacement from theft or weather damage would also be filed under a comprehensive insurance claim.

Collision: Collision insurance covers any damage that occurs to your own vehicle or personal property when involved with another vehicle in an accident. It also covers damage caused by colliding with a stationary object, like a parked car, tree, or guardrail. Collision coverage comes in handy when you are at fault in an accident or collision.

Bodily Injury Liability: In the case of an at-fault accident, bodily injury liability is an important insurance coverage to have. It essentially protects you from paying out-of-pocket expenses for the other party’s injury and medical payments. This coverage also applies to anyone listed under your insurance policy as a driver.

Property Damage Liability: Like Bodily Injury Liability, this type of insurance protects you from paying out-of-pocket expenses in the case you are held liable for an accident. Property damage liability insurance simply covers any damage done to the other party’s property, including their vehicle and personal items.

Underinsured/Uninsured Motorist Coverage: Another important insurance to have, underinsured/uninsured motorist coverage can help protect your own assets after an accident. This insurance coverage applies when the other party involved is considered at-fault and does not carry enough insurance to pay for the damage they caused. Whether they have no insurance, or they don’t carry the right kind of coverage, your insurance agency will help cover the damage.

Medical Payments and Personal Injury Protection: Medical bills are expensive, but there is a type of insurance that can help. Personal Injury Protection, or PIP, helps cover any medical payments, bills, funeral expenses, or even lost wages due to the accident. This coverage is essential in case of serious accident or injury.

There are many different types of helpful insurance coverages. Insurance doesn’t have to be confusing, either. With the help of a knowledgeable insurance agency, you can get the right insurance and coverage you need for your Colorado vehicle.

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