What is Auto Vehicle Insurance?

auto vehicle insurance

You may have heard about auto vehicle insurance, but do you really understand what it is, how it works and the different types of auto vehicle insurance? If you’re shopping for auto vehicle coverage, having a fair knowledge of auto vehicle insurance will help you a great deal. You may also want to know the different types of auto vehicle insurance and their respective coverages.  Arming yourself with these is an important step in getting the policy that’s right for you. In this publication, you will learn a few things about auto vehicle insurance, basic car insurance types, how they work and what they cover.

Kindly read on to get a heads up about auto car insurance.

What is auto insurance?

Auto vehicle insurance, also known as motor insurance, is a type of insurance  that provides cover for loss or damage to any vehicle like car, two-wheeler or commercial vehicle, etc. Auto insurance helps mitigate monetary harms due to accidents causing damage to the vehicles. The premium amounts that are payable by the person securing insurance for his vehicle depends on various factors like insured declared value, type of vehicle, age of vehicle, fuel type, age of the insured, etc.

Types of Auto Vehicle Insurance

Different types of auto vehicle insurance include:

#1. Auto Vehicle Insurance Liability coverage

#2. Collision insurance

#3. Comprehensive insurance

#4. Uninsured motorist insurance

#5. Underinsured motorist insurance

#6. Medical payments coverage

#7. Personal injury protection insurance

#8. Gap insurance

#9. Towing and labor insurance

#10. Rental reimbursement insurance

#11. Classic car insurance

Read: Selling an Upside Down Car to CarMax in 2021

#1. Auto Vehicle Insurance Liability coverage

Liability coverage is required in most US states as a legal requirement to drive a car. Liability insurance may help cover damages for injuries and property damage to others for which you become legally responsible resulting from a covered accident.

#2. Collision insurance

Collision insurance may cover damage to your car after an accident involving another vehicle and may help to repair or replace a covered vehicle.

#3. Comprehensive insurance

Comprehensive insurance can provide an extra level of coverage in the instance of an accident involving another vehicle. It may help pay for damage to your car due to incidents besides collisions, including vandalism, certain weather events and accidents with animals.

#4. Uninsured motorist insurance

Uninsured motorist insurance can protect you and your car against uninsured drivers and hit-and-run accidents. This coverage is often paired with underinsured motorist insurance.

#5. Underinsured motorist insurance

Many drivers choose to carry the minimum in liability coverage to save money, but this might not provide enough coverage. Underinsured motorist insurance can protect you in the event of an accident with a driver whose insurance is not enough to cover the costs.

#6. Medical payments coverage

Medical costs following an accident can be very expensive. Medical payments coverage can help pay medical costs related to a covered accident, regardless of who is at fault.

#7. Personal injury protection insurance

Personal injury protection insurance may cover certain medical expenses and loss of income resulting from a covered accident. Depending on the limits of a policy, personal injury protection could cover as much as 80% of medical and other expenses stemming from a covered accident.

#8. Gap insurance

Car value can depreciate quickly, so an auto insurance settlement might not be enough to cover the cost of a loan. Gap insurance may help certain drivers cover the amount owed on a car loan after a total loss or theft.

#9. Towing and labor insurance

Available if you already have comprehensive car insurance, towing and labor insurance may reimburse you for a tow and for the labor costs to repair your vehicle.

#10. Rental reimbursement insurance

Figuring out how to get around after an accident can be expensive. Rental reimbursement insurance helps pay for a rental car if your vehicle cannot be driven after an accident.

#11. Classic car insurance

Classic car insurance provides specialized coverage designed for the unique needs of vintage and classic car collectors. Find out if classic car insurance is right for you.

If you don’t currently have auto insurance, it’s crucial to get coverage as soon as possible. Get a free quote for the types of car insurance listed above so you’re protected from the unexpected.

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