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Understanding Automobile Insurance – Coverage Options

There is no doubt that if you drive without insurance, there are chances of facing serious penalties, but yet it happens. More than 2000 uninsured vehicles are met with accidents every year, a strategical survey report concludes.

The average claim for the property damages racks up to 3000 US dollars. If you have the car insurance, your policy would cover the damages caused to another party. However, you as car owner, should know what type of insurance will cover what kind of damages.

Car insurance

Types of Coverage options every car owner should be aware of:

Car insurance is made up of several types of coverage, each of which has unique features and can be potentially important to every car owner. However there are few types are coverage which are considered mandatory by law

  • Liability Insurance – This type of insurance bears the minimum coverage that every driver should be legally insured. Liability insurance covers injuries or damages to the third party and the property. Apparently, this insurance doesn’t protect the driver nor the driver’s property. For instance when you have caused a bodily injury to your third party, your liability insurance will cover for the third party medical expenses and car damages.
  • Personal Injury Protection– Also referred as personal insurance protection (PIP), this is an extension of car insurance which covers the medical expenses of the drivers. In some instance, it covers on lost wages.
  • Collision insurance – This insurance will cover for the repair or replacement of car during accident or theft. Collision insurance will also cover for the expenses during repairs, towing and few others.


When you drive either a luxurious BMW or a basic model car, you need to have a car insurance by law. Having appropriate insurance will protect you and your vehicle to meet immediate expenses. If you pay now, you can save later!


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