Types Of Auto Insurance Policies
Auto insurance is designed to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could arise from incidents in a vehicle. Cowan Insurance provides auto insurance in Lakewood, CA, Buena Park, CA, La Palma, CA, Seal Beach, CA, Cerritos, CA, Hawaiian Gardens and surrounding areas.
There are several types of auto insurance policies, each catering to different needs:
Liability Insurance: This is the most basic and mandatory coverage in most states. It covers bodily injury and property damage caused by the insured to others. It does not cover the insured’s own vehicle damage. Liability insurance typically has two components: bodily injury liability and property damage liability.
Collision Insurance: This coverage pays for damages to the insured’s vehicle resulting from a collision with another vehicle or object, regardless of fault. It is particularly useful for newer or valuable vehicles, as it ensures repair or replacement costs are covered.
Comprehensive Insurance: Also known as “other than collision” coverage, it protects against damage to the insured’s vehicle caused by events other than collisions, such as theft, fire, vandalism, natural disasters, or falling objects.
Personal Injury Protection (PIP) / Medical Payments Coverage: PIP covers medical expenses, lost wages, and other related costs for the insured and passengers, regardless of fault. Medical payments coverage is similar but may have fewer benefits and lower coverage limits.
Uninsured/Underinsured Motorist Coverage: This protects the insured in case of an accident caused by a driver who has no insurance or insufficient insurance to cover damages.
Gap Insurance: This is optional coverage for those financing or leasing a vehicle. It pays the difference between the car’s current market value and the remaining loan or lease balance if the vehicle is totaled.
Rental Reimbursement & Roadside Assistance: Optional add-ons that cover rental car costs while the insured vehicle is repaired or provide emergency services like towing, tire changes, and fuel delivery.
Selecting the right combination of these policies depends on factors such as vehicle value, driving habits, state requirements, and personal financial protection needs. If you would like to discuss your specific situation or have questions, please don’t hesitate to call or email.