Types of Car Coverage
It can be difficult to shop for insurance if you’re not sure what the different types of auto insurance are. Are you covered adequately? What does liability coverage cover? Just how comprehensive is comprehensive coverage?
We are here to help demystify the often confusing world of car and auto insurance and help you have all the resources you may need.
Are you looking for something a little more specific? Please contact us, we are here to help.
What are the different types of car insurance?
You might be looking to build your own personalized auto coverage plan, or maybe you would like to have a little more knowledge about a necessary part of car ownership. Regardless of the circumstances, we want you to be as educated as you can be. Below is a quick overview of various car insurance coverage types:
Liability
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Covers the cost of injury to others and damage to their property when you’re at fault
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Required by law in nearly all states
Collision
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Pays to repair or replace your own vehicle when you’re at fault
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Covers collisions with other vehicles, objects and animals
Comprehensive
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Covers damage to your car caused by things besides a collision
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Includes hail, wind, theft, fire, vandalism, animal damage and more
Uninsured / Underinsured Motorist
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Covers your losses caused by an uninsured or underinsured driver
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Helps pay for damage to your car and bodily injury to you and your passengers
Medical Payments
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Helps with the cost of medical care for you and your passengers resulting from injuries in an accident
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Provides this coverage no matter who’s at fault
Personal Injury Protection (PIP)
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Helps cover the cost of your rehabilitation and lost wages resulting from an accident
Covers you no matter who’s at fault
Towing and roadside service
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Provides 24/7 roadside assistance if your car is disabled
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Helps pay for towing, tire changing, locksmith service and jumpstarts
Rental Car Reimbursement
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Covers the cost of a renting a car for up to 30 days while yours is repaired
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Arrangements and billing can be handled by Farmers
Rideshare
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Helps protect drivers for rideshare companies like Uber and Lyft
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Provides coverage during periods not covered by company or personal insurance
Loss of Use
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Provides a flat sum for transportation while your car is repaired
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Can be used for public transit, rentals, taxis and rideshare services
Customized Equipment
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Covers the cost to repair or replace aftermarket equipment like infotainment systems and custom wheels
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Available on any vehicle with collision and comprehensive coverage
Personal Umbrella
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Provides additional liability coverage — above the limits on your auto policy
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Helps protect your assets from lawsuits
Glass Deductible Buyback
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Covers windshield and glass repair and replacement
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Usually comes with a $100 deductible (the portion you pay yourself)
Full Windshield and Glass Coverage
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Offers $0 deductible on glass repair and replacement
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Pay nothing out of pocket
Spare Parts Coverage
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Covers the cost to replace spare parts you keep on hand, up to $750
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Popular choice for owners of classic and collector cars
Original Equipment Manufacturer (OEM)
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Covers the cost of using factory-original parts in covered repairs
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Usually available on cars up to 10 years old
New Car Replacement Coverage
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Covers the cost to replace your car with a new one of the same make and model
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Available when your car is totaled within the first two model years and 24,000 miles
Accident Forgiveness
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Some insurance will forgive one at-fault accident in a certain time frame
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This helps to keep your premium from going up because of just one accident
Other
You might also hear the term Gap Insurance. This isn’t a coverage usually offered by Insurance Companies — in fact, it’s most frequently sold by car dealers during the purchase process. What gap insurance covers is the difference between the amount you owe on your car and its value in the event of a total loss. It’s worth your consideration when you borrow more than a car is worth.