Types of Coverage

The types of coverage required vary from state to state but it is important to know the difference.  Although insurance companies within each state have various policy coverages, it is good familiarize yourself with the language.  It is hard to remember what each of the different types of coverage means.  I hope that you will find this little cheat sheet helpful.  Next time an insurance agent starts talking to you, you might be able to follow.  Check out your prospective insurance company website for more information.

Collision – This portion covers your vehicle in case of an auto accident.

Comprehensive – This covers your vehicle in case of certain other incidents not related to auto collisions.

Liability – This covers bodily injury of others that occurs during a collision.

Medical coverage – This covers auto accident related medical expenses no matter who is at fault.

PIP – This covers medical expenses for insured driver.

Rental Reimbursement – This covers car rental expenses in case of an accident.

Uninsured Motorist – This covers car damages in case of an auto accident with a motorist without liability insurance.

Underinsured Motorist – This covers car damages in case of an auto accident with a motorist without full liability insurance.