Shopping for the right car insurance policy can be challenging, especially if you don’t understand the different policy types. Some car insurance coverage is mandatory, while additional policies can be an optional add-on for car owners. Let’s explore the common types of car insurance Springdale AR, and what you need for your 2023 policy.
Different Car Insurance Types and What You Need
You can add six common types of car insurance to your policy. Some are mandatory based on where you live, while others are optional. Even if a specific kind of coverage isn’t required in your state, you may want to invest. Let’s start with a breakdown:
- Liability Coverage– Liability coverage is required in nearly every state as it pays for other people’s expenses after an accident.
- Collision Coverage– Collision is typically required for leased or financed cars and pays to repair or replace the policyholder’s car after an accident, regardless of fault.
- Comprehensive Coverage– Also required for leased or financed cars, comprehensive policies cover damage to a policyholder’s vehicle caused by something other than an accident.
- Personal Injury Protection– Required in 12 states, personal injury protection pays for direct and indirect medical expenses after an accident.
- Uninsured/Underinsured Motorist Coverage– Covers vehicle damage and medical expenses after an accident with an uninsured or underinsured driver.
- Medical Payments Coverage– While only required in two states, some people add medical payments coverage to pay for the policyholder’s direct medical expenses after an accident.
Liability coverage is the only insurance type required in nearly every state, regardless of whether you own, lease, or finance your vehicle. New Hampshire and Virginia are the only states that don’t require the coverage. Liability policies cover other people’s medical bills and property damage from an accident caused by the policyholder.
Collision and comprehensive coverage are required insurance Springdale AR for most states on leased or financed vehicles. Collision policies cover damage to your own vehicle if you are involved in an accident with another car, hit by a stationary object, or get into a single-car accident. Comprehensive policies cover damage to your own vehicle caused by something other than a collision, like vandalism or natural disaster.
Additional Optional Policies
Personal injury protection, uninsured/underinsured motorist coverage, and medical payments coverage are less common policies. Still, many people add this coverage for peace of mind, and some states do still require these policies to drive legally.
Personal injury policies cover medical expenses for you and your passengers after an accident. Traditional medical bills and those not covered by health insurance, such as childcare, lost income, or funeral expenses, are typically covered. This insurance type is required in the following states:
- Delaware
- Florida
- Hawaii
- Michigan
- Massachusetts
- Kansas
- Minnesota
- New York
- Utah
- Oregon
- North Dakota
- New Jersey
Even if it’s not mandatory in your state, PIP policies can help cover significant medical bills. Therefore, it’s an intelligent choice if you can afford to add the coverage to your policy.
Uninsured/underinsurance motorist coverage handles medical bills and vehicle repairs if you’re in an accident with an uninsured motorist or driver without enough liability insurance to cover your expenses. These policies are required in:
- Connecticut
- Illinois
- Kansas
- Massachusetts
- Maryland
- Maine
- Minnesota
- Missouri
- North Carolina
- North Dakota
- Nebraska
- New Hampshire
- New York
- Oregon
- South Carolina
- South Dakota
- Virginia
- Vermont
- Wisconsin
- West Virginia
- Washington D.C.
Finally, medical payments coverage is only required in Maine and New Hampshire. It covers accident-related medical expenses for you, your passengers, household members, and other policyholders. It can also cover copays and deductibles for your health insurance policy.
Contact Rocky Steele Insurance Springdale AR, for More Information
If you’re looking for the right car insurance policy for your needs, we’re here to help. Contact us today to schedule a consultation and find the right coverage to protect your assets.
