Different Types of Auto Insurance – Car Talk Podcast
surance can be a hassle. There are many insurance companies, and multiple different policies inside the same firm. The video below explains the different types of car insurance , so you are able to make an educated decision.
Liability coverage is the first type of insurance. It’s the most sought-after type of insurance that is available for automobiles, and is generally mandated by every driver under State law. This insurance policy covers damage caused by an accident in which you’re at fault. If someone’s car has been damaged or injured in an accident that you are responsible for, liability insurance is in place to pay for the damages.
In some states, it is not mandatory for drivers to be covered by liability as well as some liability insurance policies aren’t enough to cover massive amounts of damages. This is where uninsured/underinsured motorist coverage comes in. If you are involved in an accident, and the responsible driver’s insurance won’t pay for the costs, this policy is activated.
Physical damage coverage in the event the car you own is damaged because the course of an accident. If, for instance, an limb of a tree falls onto your car, physical damage insurance will be able to pay for the damage. The video can be viewed for further details.