Learn Different Auto Insurance Coverage Types


Auto Insurance Type GuideThere are multiple types of auto insurance. Learning what these different types are will help you understand which type of auto insurance you need and is best suited to protect you.

What is Full Coverage Auto Insurance?

Full coverage auto insurance is a term described to provide you with the absolute most coverage possible within the limits of the regulations of your home state. As insurance laws and regulations differ from state to state, this idea of “full coverage” will also differ.

Essentially most experts agree that it should include $100,000 single injury coverage, $300,000 multiple person injury coverage and $50,000 property insurance coverage at a minimum combined with many optional insurances available. These optional insurances include comprehensive, collision, medical payments, towing and labor, GAP coverage and rental car reimbursement.

How Much is Full Coverage Car Insurance?

The nature of the insurance market dictates that the price of full coverage car insurance is a large range. There are many factors that go into these pricing algorithms that can include any or all of the following: age, sex, location, rural vs. city, vehicle, driver record, student gpa, career, mileage driven per year, crime rate, car safety features, green car, amount of base coverages needed, deductibles, traffic violation history and more.

The average prices for full coverage can range from $90 monthly to $250 a month.

What is Comprehensive Auto Insurance?

Comprehensive coverage covers damage done to your own vehicle not caused by an accident or collision. This usually covers fraud, theft, vandalism and acts of extreme weather.

What is Liability Car Insurance?

Liability car insurance only covers third party damages and injuries but does not cover the policy holder. So if you are driving and cause an accident with injuries and damages to yourself, others and multiple vehicles including your own, this insurance does not cover your injuries or vehicle.

What is a Deductible in Car Insurance?

Deductibles in car insurance coverages dictate an amount of money that you will have to pay first before the insurance company will cover the rest of the fees. If you are in an accident that causes $3000 of damage to a vehicle with a deductible of $500, you will need to pay $500 but the insurance policy will pay the remaining $2,500 in costs.

What is GAP Insurance for a Car?

If you finance a vehicle purchase and then get into an accident that causes a total write off of the car, meaning that it is not worth fixing, gap insurance can help. Often the remaining value of the car according to the insurer may be less than what you actually owe on the financing of the vehicle creating a situation where you would owe the financer of the vehicle for the remaining value outstanding. Gap insurance coverage would cover this ‘gap’ in costs.

What is Classic Car Insurance?

This insurance covers a vehicle that is not your primary driving vehicle, is a classic car, generally defined as older than 20 years old and must be stored in a secure location.

What is non-owners car Insurance?

This is insurance if you have a driver’s license but do not own a car. You can provide continuous coverage even if you rent vehicles, participate in car sharing models or driver other peoples vehicles.

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