Types of Auto Insurance

Auto insurance coverage is an essential part of owning and operating a vehicle, providing financial protection after accidents, damage or other incidents. It encompasses various coverage options designed to address specific needs and circumstances for the driver and their vehicle.

What Are the Different Types of Auto Insurance Coverage Available?

Auto insurance coverage can vary depending on your specific needs and the laws and regulations in your area. However, the following are several common types of coverage available:

• Liability coverage
• Collision coverage
• Comprehensive coverage
• Uninsured/underinsured motorist coverage
• Medical payments or personal injury protection
• Gap insurance
• Rental reimbursement coverage
• Towing and labor coverage
• Custom parts and equipment coverage
• Roadside assistance
• Classic car insurance
• Rideshare insurance
• Commercial auto insurance

When choosing auto insurance coverage, consider your individual needs and your state’s legal requirements. Many people opt for a combination of these coverages to ensure they are adequately protected in case of an accident or other unforeseen incidents.

When Is Gap Insurance Advisable for Car Owners?

Gap insurance is advisable for car owners in specific circumstances, such as when they finance or lease a new vehicle with little or no down payment, opt for long-term loans, drive high-depreciation cars, roll over negative equity from previous loans or lack an emergency fund. Gap insurance can provide financial protection if your car is totaled or stolen, and your primary auto insurance payout doesn’t cover the remaining loan or lease balance. Assess your financial situation and auto financing terms before deciding whether gap insurance is a prudent choice.

What Does Comprehensive Auto Insurance Cover?

Comprehensive coverage can provide protection for a wide range of non-collision-related events, such as damage from select natural disasters, theft, vandalism, falling objects, animal collisions, fire, hail and explosions. Comprehensive insurance is often optional, but it can be a valuable addition to your policy, especially if you want to protect your vehicle from a wide range of non-collision risks.

Consider your circumstances and the potential risks in your area when deciding whether to include comprehensive coverage in your auto insurance policy.

Auto Insurance in Taylorsville, UT

Contact Goal Insurance to discuss your auto insurance needs. We can make coverage recommendations based on your specific vehicle, driving habits and local regulations.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.