Outside of the minimum requirements based on where you live, you get to choose the amount of coverage you want, what types of coverages you want, and what deductibles you want. Personal injury protection (PIP), which is only available in some states.Other types of insurance coverage include: Like comprehensive coverage, collision is optional, but you may be required to have it if you’re leasing the car or you’re paying off a loan for it. The coverage helps to pay for the repair or replacement of your car. Collision coverage protects you if you’re involved in an accident with another driver or you hit an object while you’re driving. While comprehensive is optional in most states, a lender may require it if you’re leasing or financing your vehicle.Ĭollision. Covered incidents may include fire, downed trees, hail, vandalism, and theft. Comprehensive coverage protects you if something happens to your car when you’re not driving it. This coverage consists of bodily injury and property damage.Ĭomprehensive. Most states require drivers to carry liability insurance, and you need to have at least the minimum amount of coverage your state requires. Some of the most common auto insurance coverages include: Keep these factors in mind when choosing. For instance, a high deductible means lower monthly premiums, but you’ll have to pay more out of pocket before your policy kicks in. Raising or lowering your deductible also affects your out-of-pocket costs. Decreasing it, on the other hand, means you pay more. If you increase your deductible, you pay less a month for your policy. Altering it does have a direct impact on what you pay each month. You can also increase or decrease your deductible based on your budget and personal comfort. While it’s better to be over-insured than under-insured, you’ll want to make sure you’re not paying more than you need. You want to ensure that you have adequate coverage in the event of an accident. Some states have required minimum amounts on the required coverages, but you can increase the protection if you feel it’s necessary. Depending on where you live, certain components are required, while others are optional. Your auto insurance policy is a package of protections.
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