February 13, 2022

Michael Bailey

8 types of car insurance: Finding cheap car insurance that covers what you need

When looking for car insurance, you will understandably want to find coverage for the least expensive cost. But the price should not be your only consideration.

There are various types of car insurance policies, each of which provides varying levels of protection. So, getting to know the different types can help you to find the policy that is right for your specific needs.

Compare Multiple Car Insurance Quotes Online

Once you know what type of coverage is best for your needs, you can compare multiple car insurance companies online using a great site like Cheap Insurance.

Look for insurers that tick your boxes and then compare their online quotes to find the cheapest auto insurance that covers precisely what you need. Your requirements could be any of the eight following types of car insurance.

1. Liability Car Insurance

Liability car insurance covers the expenses of vehicle repairs and medical bills after accidents in which you are at fault. It does not cover passengers. Almost every state in the U.S. requires drivers to have this type of auto insurance.

2. Comprehensive Car Insurance

If your car unexpectedly needs repairing or replacing, it can be a cost that is difficult to cover if you do not have the right insurance in place. That is why you should consider taking out comprehensive car insurance.

It covers damage to your vehicle that is not caused by an accident. That includes natural disasters and acts of vandalism.

3. Collision Car Insurance

Similarly, if you think you will not be able to afford to repair or replace your car when it becomes unexpectedly damaged, you should consider getting collision car insurance.

It covers damage caused to your car from being involved in an accident with another car or hitting a stationary object.

4. Personal Injury Protection

Personal injury protection covers medical expenses for you and any passengers in your car after an accident.

Although PIP is only required in twelve states, you should consider getting it anyway because it can protect you against receiving unexpected and expensive medical bills.

5. Medical Payments Coverage

Commonly known as MedPay, medical payments coverage also covers medical expenses for you and your passengers that are involved in a road accident. It can also cover the deductibles and copays of other insurance policies like PIP.

Basically, MedPay is similar to PIP but more limited. It is mandatory in New Hampshire and Maine. Even where it is not compulsory, you should consider MedPay to supplement your existing PIP and health insurance coverage.

6. Uninsured/Underinsured Motorist Insurance

Even though the vast majority of states require drivers to have some type of car insurance, people still drive vehicles when they are uninsured.

If you have an accident involving an uninsured or underinsured driver who does not have sufficient liability coverage, things can get complicated and you could find yourself out of pocket. Therefore, you should consider taking out uninsured/underinsured motorist insurance.

7. Emergency Roadside Assistance

This type of insurance is a great safety net. With it, you can quickly gain assistance should you need a jumpstart or tow, run out of gas, get a flat tire, or lock yourself out of your car.

8. Gap Insurance

Gap insurance can be useful to some drivers. If your car is lost or stolen, this type of insurance can cover the amount owed on your car loan.

Auto insurance settlements might not be enough to cover the cost of your car loan due to the fact that vehicles depreciate in value quickly. So, if you have an auto loan, consider getting gap insurance.