Types of Auto Insurance Coverage
Common Auto Insurance Coverage
Understand the common types of auto coverage and get the insurance you want, to fit your budget.
There are two types of liability coverage – coverage for Bodily Injury and coverage for Personal Property. Most states require you to carry a minimum amount of liability coverage, or post a bond, to register your vehicle or obtain a driver’s license.If youвЂ™re legally responsible, or вЂњliableвЂќ for damages, Liability coverage helps pay for them.
Legally required for drivers in almost every state, Liability coverage includes Bodily Injury and Property Damage coverage, which pay for someoneвЂ™s medical expenses, personal injuries, and property damage if youвЂ™re at-fault.
Sometimes called вЂњOther Than CollisionвЂќ or вЂњFire and Theft,вЂќ Comprehensive covers losses from things other than an accident, like vandalism, riots, floods, hail, fire, animal collisions, and theft.
Uninsured/Underinsured Motorist Coverage
These days, about 1 in 8 driversfooter note* are completely uninsuredвЂ¦and about 30% of drivers donвЂ™t have enough insurance. ThatвЂ™s why itвЂ™s important to consider Uninsured/Underinsured Motorist Coverage. It provides Liability (Bodily Injury and Property Damage) coverage for you, if an uninsured or underinsured motorist is at fault in an accident.
Personal Injury Protection (PIP)
When deciding on your Auto insurance policy or making changes to your coverage, itвЂ™s important to understand what each option does, and how it would work if you ever needed it. Some coverages are required by your state, while others are extra options you may want to expand your coverage.
How youвЂ™d like to customize your Car insurance depends on your needs, budget, and the amount of coverage you want. Get an Auto insurance quote or work with your local Farmers agent to choose the coverage combinations that provide the best Car insurance coverage at a price that fits your budget.
*According to a 2014 study by the Insurance Research Council (IRC).
This brief summary is not a policy document. Please read the actual policy documents for your state for important details on coverages, exclusions, limits, conditions and terms. If there is any conflict between this summary and the policy documents, the policy documents will control. Not all products and discounts are available in every state.