Car Insurance Basics: A Guide to the Different Types of Coverage

Car Insurance Basics: A Guide to the Different Types of Coverage

No matter where you’re heading, it’s essential (and often required by law!) to protect yourself and your passengers with car insurance. With multiple types of car insurance coverages, understanding the differences can be confusing, but it doesn’t have to be. ABC Insurance Agencies is here to simplify each type of car insurance coverage to help you understand what will best protect you in the driver’s seat.

What are the Different Types of Car Insurance?

1. Bodily Injury Liability

Bodily injury liability coverage helps pay for another person’s medical costs if you are found at fault for the accident. Keep in mind that this type of car insurance does not pay for your injuries following the crash. Bodily injury liability coverage can also cover:

  • Legal fees if a lawsuit is filed against you
  • Income compensation for the other party if their injuries require time off from work
  • Ongoing pain if the other drive claims ongoing physical or emotional suffering
  • Funeral expenses should there be a fatality from an accident

The state minimum requirement for bodily injury liability coverage in Louisiana is $15,000 per person and $30,000 per accident. The state minimum requirement for bodily injury liability coverage in Texas is $30,000 per person and $60,000 per accident.

2. Property Damage Liability

Property damage liability insurance helps cover (up to the car insurance policy’s limits) the damages made to another person’s property when you are responsible for a crash. Just like bodily injury liability coverage, property damage liability coverage also does not pay for damages to your personal property.

The state minimum requirement for property damage liability coverage in Louisiana is $25,000 per accident. Texas residents are required to have $ $25,000 of property damage liability coverage per accident.

3. Personal Injury Protection (PIP)

No matter who is at fault, personal injury protection helps pay for medical costs for any injuries that you and your passengers incur following an accident. Personal injury protection can also pay for:

  • Injuries to a pedestrian caused by a vehicle
  • Childcare fees when an injured person is unable to care for their children
  • Loss of income due to an injured party’s inability to work
  • Funeral costs

Personal injury protection coverage is not available in all states.

4. Uninsured Motorist Coverage

Don’t let yourself get into a bind if you are involved in an accident caused by a driver who doesn’t have car insurance. Uninsured motorist coverage can cover your personal or property damages caused by another driver even if they are uninsured.

5. Collision

Collision coverage provides drivers with additional protection by covering damages to their vehicles (and to replace their vehicle if needed) after collisions with other objects, such as:

  • Cars
  • Guardrails
  • Trees
  • Houses

Collision coverage also covers damages to your vehicle if you are involved in a hit-and-run or if your car flips on the road.

6. Comprehensive

Comprehensive coverage protects drivers from unexpected events aside from collisions, including:

  • Vandalism
  • Theft
  • Falling objects
  • Damages from natural disasters, like hail, fires, or flooding
  • Animal-related accidents

Keep in mind that comprehensive coverage does not mean “full coverage” and will not protect drivers from damages caused by a collision with another object. This is where collision coverage comes in. Many insurance companies offer comprehensive and collision coverage to their customers, so they are fully prepared for all types of accidents.

If you are searching for affordable car insurance that meets your budget and lifestyle, ABC Insurance Agencies can shop for the best car insurance policy for you to help you save money and drive safely. ABC Insurance agents are knowledgeable about the requirements and laws required of Louisiana and Texas drivers and can help you understand what kind of car insurance coverage best meets your personal needs. If you have any questions regarding the different types of car insurance coverage, call 800-708-0123, click, or visit a friendly ABC Insurance agent near you to learn more today.

The information provided in this blog is designed to give helpful advice on the topic discussed. It is not intended to provide legal or any other type of advice and is not meant to be a thorough discussion of every issue that a person should consider or may encounter. ABC is not responsible or liable for the availability of links to websites or resources, or for any content, advertising, products, services or other materials on or available through these websites or resources or your reliance thereon. Any references to third party rates or products are subject to change without notice. Trademarks are property of their respective owners. ABC Insurance Agencies-members of the National General Insurance Group, Winston-Salem, NC.

ABC is very competitive and when you add the service, there's no competition!
ABC Insurance Agencies work with the following top insurance companies