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What Are the Different Types of Auto Insurance Policies?

Zoom Local News > finance > What Are the Different Types of Auto Insurance Policies?

What Are the Different Types of Auto Insurance Policies?

Car insurance is a necessity for all drivers, but it can be difficult to know what type fits your needs the best. There are many varieties of car insurance, each with different types and benefits. Here are the different types of auto and trucks insurance policies and what each cover.

Liability Insurance

This is the most basic type of car insurance policy. This covers damage to property and harm to others if you are at fault in an accident. The most common type of liability insurance is comprehensive coverage, which will pay for damage to the car or injury to others if you are at fault. However, this will not cover damage to another’s property if you are at fault in an accident.

Accident/Medical Insurance

This is an optional type of auto insurance policy known as Accident or Property Damage Liability Coverage. This type of policy can cover injury and medical expenses caused by your car accident in addition to property damage. The minimum amount of this coverage is a minimum of $50,000 for bodily injury and medical expenses.

Personal Injury Protection/PIP

This is a popular type of vehicle insurance policy. It covers medical expenses for injury or death to your family members or other people covered under your policy. It also covers loss of income if you cannot work due to injuries sustained in an accident.

Uninsured/Underinsured Coverage

If you do not have enough insurance coverage to cover a claim, this type of policy will cover it and will pay what your car insurance does not cover. These policies are useful on the condition that you have comprehensive coverage.


This auto and trucks insurance covers theft in the car while it is in your possession, but it does not cover your car when someone else has it. This type is usually higher than some other types of driver’s insurance, but it provides more protection than others.

Roadside Assistance

Roadside assistance services are increasingly available and purchasing a basic insurance policy is much more appealing. This type of policy covers damage to your car, although it will not cover other vehicles that have had accidents. It also covers the time and mileage loss due to auto repair as well as tows while out of the vehicle.

Rental Reimbursement

This type of insurance policy covers the cost of a rental car while yours is being repaired due to an accident. This type is usually available at an additional cost with another insurance policy.


Customization coverage covers alterations to your vehicle, whether they be structural or cosmetic that is not common on other vehicles in general. This covers alterations to the body and engine, including engine modifications, custom paint, or body additions such as spoilers and neon lights.

Comprehensive Coverage

Comprehensive coverage is a type of car insurance policy that covers damage to your car from a variety of sources, including fire, theft, and vandalism. Comprehensive coverage will often include the cost of repairing or replacing damaged parts and your deductible.

GAP Insurance

GAP insurance may be required if you lease your vehicle instead of buying it outright. GAP insurance covers the difference between what you owe on your lease and the insured value in case of an accident or theft. This provides savings of as much as 30% off the daily rental charges you will pay while your car is in the shop.


Auto insurance policies are a fairly straightforward way to protect yourself and your vehicle. There are several types of coverage, and some require specific policies, but it is easy to choose the type that best fits your needs.