Types of auto insurance policies you should research about
When shopping for auto insurance, it’s important to understand the various types of coverage available. IMSC Insurance Offices, Inc. provides car insurance in Murray, UT, Riverton, UT and surrounding areas.
Each type of policy serves a specific purpose and protects you from different risks. Below are the main types of auto insurance policies you should research:
Liability Insurance
This is often mandatory and covers bodily injury and property damage you cause to others in an accident. It typically includes two components:
Bodily Injury Liability: Covers medical expenses, lost wages, and legal fees if you’re responsible for injuring others.
Property Damage Liability: Covers the cost to repair or replace someone else’s property damaged in an accident you caused.
Collision Insurance
Collision coverage pays for damage to your own vehicle resulting from a collision with another vehicle or object, regardless of fault. This is especially important if you have a newer or expensive car.
Comprehensive Insurance
Comprehensive insurance covers damage to your vehicle caused by non-collision incidents, such as theft, vandalism, fire, natural disasters, and falling objects. It’s essential for protection against unexpected events.
Personal Injury Protection (PIP)
Sometimes known as no-fault insurance, PIP covers medical expenses and, in some cases, lost wages and other related costs for you and your passengers, regardless of who caused the accident.
Uninsured/Underinsured Motorist Coverage
This protects you if you’re involved in an accident with a driver who has no insurance or insufficient coverage to pay for your damages. It’s particularly important in areas with high numbers of uninsured drivers.
Medical Payments Coverage (MedPay)
MedPay covers medical expenses for you and your passengers after an accident, regardless of fault. It’s similar to PIP but usually more limited in scope.
Gap Insurance
If you lease or finance your vehicle, gap insurance covers the difference between your car’s actual cash value and the amount still owed on your loan if your vehicle is totaled.
Researching these policies helps you build the right coverage for your needs and ensures you’re protected against a range of risks on the road. If you have any questions, please do not hesitate to contact us.
