What type of car insurance must you legally have?

Consider buying more liability coverage. Some types of auto insurance are required by state law, while other types of insurance are optional. Buying more insurance coverage provides greater protection for drivers who are willing to pay higher premiums. To make a good decision about which car insurance policy to buy, you need to have a general understanding of the different types of coverage available.

Most states require certain types of auto insurance, such as liability, uninsured driver, personal injury protection, or MedPay. In addition, if you have a loan or lease for your car, your lender may require you to have collision and comprehensive insurance. Liability coverage is required in most U.S. states.

As a legal requirement to drive a car. Liability insurance can help cover damage for injuries and property damage to third parties for whom you are legally liable as a result of a covered accident. Liability insurance includes both personal injury liability insurance and property damage liability insurance and pays for the other driver's expenses after any accidents you cause. Life insurance can replace lost income, pay off debts, and help pay other costs that your loved ones may incur.

For example, high-risk drivers with a history of claims tend to pay more for collision insurance because they are more likely to be involved in an accident. Even if your state doesn't require a type of coverage, it may still be available to purchase from your insurer. Collision insurance is a type of car insurance that covers damage to your vehicle caused by an accident, regardless of who was at fault. For more information, see WalletHub's guide to full coverage car insurance and compare the cheapest full coverage car insurance companies.

The terms, definitions and explanations of insurance are intended for information purposes only and do not replace or modify in any way the definitions and information contained in the individual insurance contracts, policies or declaration pages, which prevail. You must have at least the bodily injury liability insurance coverage your state requires, and it's good to buy coverage limits that are equal to your assets. If you were involved in a vehicle collision and need experienced legal advice, consider talking to an Austin car accident lawyer who can help you understand how insurance affects your legal options. Personal injury protection insurance can cover certain medical expenses and loss of income as a result of a covered accident.

If you have coverage against underinsured motorists, your insurance will cover damage or injury beyond the limits of the other driver's policy. Similarly, if you are concerned about the reliability of your car, emergency roadside assistance and mechanical breakdown insurance are great types of coverage. Medical payment coverage covers your medical expenses after an accident, regardless of who was at fault, so it usually overlaps with PIP and standard health insurance. Repair or replace the insured's car if it is damaged by something other than an accident, such as vandalism or a natural disaster.

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