Car insurance is designed to protect the policy holder (usually the owner of the vehicle) from financial loss in the event of a car accident. For this protection the policy holder pays a regular premium which varies according to a wide variety of factors like the age of the driver, the vehicle being insured, the driver’s record and location to name a few.

There are presently several different types of car insurance to protect the policy holder from costs arising out of damage to the car, damage to property and bodily harm of all persons involved in a vehicular accident. The different types of insurance cover include:

Liability cover which pays for damages to others or to their property as a result of an auto accident and which also meets any court costs involved. In many states this is the absolute minimum of cover required before you are allowed to drive an automobile on public roads.

Collision  cover which is designed to pay for damages to your own car in the event of a collision with another car or object.

Comprehensive cover which is designed to pay for several forms of damage including fire, theft, vandalism and damage resulting from severe weather.

Medical cover which pays for any medical expenses for injuries resulting from an auto accident.

PIP (Personal Injury Protection) cover which provides payment for medical expenses when an injury is sustained in an accident, regardless of whose fault it is.

Uninsured and under-insured cover which pays for any damages sustained to you in the event that the other driver involved in an auto accident has no insurance.

Each state has its own laws governing car insurance and some kinds of cover are mandatory in a particular state while others will be optional. Some states, for example, only require you to have liability cover while other states require you to have PIP insurance cover.

There are also various states that are considered ‘no-fault’ states in which insurance policy holders can recover any financial losses from their own insurance company, irrespective of who is deemed to be at fault in an accident.

Make sure that you have the correct type of car insurance by letting the professionals provide you with a free, no-obligation cheap car insurance quote today.

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