What Types of Car Insurance Do You Need?


Car insurance protects you and your passengers from the financial burden of an accident. Minimum legal requirements vary by state, but most drivers choose full coverage policies that include liability plus comprehensive and collision.


Review the available coverages carefully with an agent or broker. Your lifestyle, budget and driving habits will affect the type of coverage you need.


Liability coverage pays for damage you cause to other people’s cars or property in an accident. It also covers medical expenses for those injured in your car, up to a certain limit. Most states require liability insurance, and it’s a good idea to buy more than the minimum amount.

Your state’s laws and your driving record determine the limits of your liability policy. In most cases, your car insurer will present these limits as “split” limits: bodily injury per person and property damage per accident. Your policy may also have a combined single limit, which combines the two into one number that applies to all damage caused in an accident.

In addition to liability, you should consider personal injury protection (PIP) or no-fault insurance. This coverage pays for your medical bills, lost wages and other costs if you or your passengers are hurt in an accident, regardless of who is at fault. It also covers medical expenses for pedestrians struck by your car.

Other types of car insurance cover damage to your own vehicle, such as comprehensive and collision insurance. The premium and deductible amounts for these coverages vary by state, reflecting differences in repair prices, cost of living, crime rates and accident statistics. You may also choose to include additional riders to customize your policy. For example, you can purchase roadside assistance coverage, which provides help with towing, mechanical breakdown and other services.


Although 운전연수 it’s a little more expensive than collision coverage, comprehensive insurance helps protect your car from damage caused by non-collision events. This includes damage from floods, fire, and even vandalism or theft. In many cases, if you are able to prove that the damage is due to an event that isn’t your fault, your comprehensive insurance will help pay to repair or replace your vehicle.

The deductible you choose for your comprehensive coverage (which is separate from the collision deductible) will affect how much you will pay for the policy. Generally, a higher deductible will result in lower rates, as long as you can afford to cover the cost of any claims you might have to make.

If you have a loan or lease on your vehicle, your lender will likely require that you carry both collision and comprehensive coverage. However, once your loan or lease is paid off, you can decide whether to keep comprehensive coverage or drop it. A good rule of thumb is that if the annual cost of your comprehensive and collision coverage exceeds 10% of your car’s actual cash value, you should consider dropping the coverage.


Collision coverage pays to repair or replace your vehicle if it is hit by another car or overturned in an accident. It can also pay for your vehicle if it is stolen or damaged by vandalism. This type of coverage is generally more expensive than comprehensive, but it may be worth it to you depending on your circumstances. Often, a collision policy will come with a deductible that you must pay out of pocket before the insurance company begins paying on the claim. Make sure you choose a deductible that you could afford to pay in the event of an accident.

If your car is new, it’s probably worth getting this type of insurance. However, many people decide to drop it after their cars reach about ten years in age. Also, if you’re not financing or leasing your vehicle, you may not need it. If you are financing or leasing your vehicle, your lender will most likely require you to get both comprehensive and collision coverage.

Comprehensive insurance pays to repair or replace your vehicle for events that are outside of your control while driving, such as fire, floods, hail, a falling tree branch or collision with an animal. It also covers your car if it’s stolen, even if the driver is unknown. You can also add this coverage to your collision policy.

Uninsured/Underinsured Motorist

Uninsured/underinsured motorist coverage, also known as UM/UIM insurance, pays for damages if you are in an accident with a driver who doesn’t have car insurance or whose insurance doesn’t meet state requirements. Twenty states require this coverage, and it’s a good idea to have it even in places where it’s not required. There are two kinds of UM/UIM coverage: uninsured motorist bodily injury (UMBI) and uninsured motorist property damage (UMPD). In some cases, you can “stack” your UM/UIM limits if you insure more than one vehicle with the same provider.

UM/UIM coverage helps pay for your medical expenses, pain and suffering, lost wages and funeral expenses when you’re in an accident with an uninsured driver. It can also help you and your passengers in cases of hit-and-run accidents. Supplemental underinsured motorist coverage, or SUUM, helps pay for your medical expenses when the at-fault driver has liability insurance but not enough to cover all your costs.

UM/UIM insurance costs relatively little, and it can save you a lot of money in the event of an accident with an uninsured or underinsured driver. It’s usually worth the investment, especially since it can be combined with other types of coverage such as PIP and collision. If you have questions about how uninsured/underinsured motorist protection works, contact a Ten Eyck Group agent.