7 Types of Auto Insurance Coverage Explained

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By: Aquib Nawab

Finance

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1 - Property Damage Liability

Property Damage Liability coverage steps in to cover the costs of damages your vehicle inflicts on property belonging to others, such as vehicles, fences, or mailboxes. For example, if you collide with a neighbor's fence, this insurance will help cover the repair or replacement costs.

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Uninsured/Underinsured Motorist coverage steps in to cover damages if you're involved in an accident caused by a driver who lacks insurance or carries insufficient coverage. It comprises three components covering bodily injury and property damage.

2 - Uninsured/Underinsured Motorist Coverage

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3 - Bodily Injury Liability

Bodily Injury Liability coverage acts as a shield against financial loss in accidents where you're at fault for injuring someone else. For instance, if you accidentally cause harm to another person while driving, this coverage assists with their medical expenses.

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Collision coverage provides financial protection for damages sustained by your vehicle in the event of a collision with another vehicle or object, irrespective of fault. For instance, if you collide with a tree while reversing, this coverage will aid in repairing your car.

4 - Collision Coverage

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Personal Injury Protection (PIP) provides coverage for losses resulting from car accident injuries, including medical bills, funeral costs, or lost wages, regardless of fault.

5 - Personal Injury Protection (PIP)

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6 - Comprehensive Coverage

Comprehensive coverage offers protection against a wide range of non-collision incidents, including natural disasters, theft, vandalism, or animal collisions. For instance, if your vehicle sustains damage due to a fallen tree branch or is stolen, this insurance will cover the costs of repair or replacement.

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Medical Payments Coverage assists in covering medical expenses and rehabilitation for you and your passengers, regardless of fault. This coverage may even apply if you're involved in an accident outside of your state of residence.

7 - Medical Payments Coverage

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Full Glass Coverage ensures that repairs to your vehicle's glass components are covered without requiring you to pay a deductible. For instance, if your car's window is damaged due to vandalism, this coverage will take care of the repair costs.

Full Glass Coverage

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Car Towing Coverage

Car Towing Coverage reimburses you for towing and labor charges associated with vehicle breakdowns or roadside assistance needs. For example, if your car's battery dies, this coverage will help cover the costs of jump-starting your vehicle.

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Personal Umbrella Insurance extends coverage beyond standard policies, providing additional protection if a covered loss exceeds the liability limits of your primary policy. It offers an added layer of security against unforeseen circumstances.

Personal Umbrella Insurance

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