The most common car insurance is liability insurance. This type of insurance covers damages or injuries that you may cause to another person or their property while operating a vehicle. It is required by law in most states and is often the minimum amount of insurance that drivers must carry.
Liability insurance is typically broken down into two categories: bodily injury liability and property damage liability.
odily injury liability coverage is a type of car insurance that covers medical expenses and other damages that you may cause to another person if you are at fault in an accident. It is typically included in a liability insurance policy, which is the most common type of car insurance.
When you purchase a bodily injury liability policy, you will need to select a coverage limit. This is the maximum amount of money that your insurance company will pay out if you are found to be at fault in an accident. It is important to choose a coverage limit that is high enough to protect you in the event of a costly accident, but not so high that it is unaffordable.
In addition to medical expenses, bodily injury liability coverage may also cover lost wages, rehabilitation costs, and other damages that the injured party may incur as a result of the accident. It may also cover legal fees if the injured party decides to take legal action against you.
Property damage liability coverage is a type of car insurance that covers damages that you may cause to another person's property while operating a vehicle. This may include damages to their vehicle, as well as other types of property such as fences, buildings, or utility poles.
Property damage liability coverage is typically included in a liability insurance policy, which is the most common type of car insurance. When you purchase a property damage liability policy, you will need to select a coverage limit. This is the maximum amount of money that your insurance company will pay out if you are found to be at fault in an accident that causes damages to another person's property.
In addition to liability insurance, other common types of car insurance include collision insurance, comprehensive insurance, and uninsured/underinsured motorist coverage. Collision insurance covers damages to your own vehicle if you are involved in an accident, regardless of who is at fault. Comprehensive insurance covers damages to your vehicle from non-collision events such as theft, fire, or natural disasters. Uninsured/underinsured motorist coverage protects you if you are in an accident with a driver who does not have insurance or does not have enough insurance to cover the damages.
It is important to note that the most common car insurance will vary depending on where you live and your individual driving needs. It is always a good idea to speak with an insurance agent to determine the right coverage for you.