What Are The Different Types Of Car Insurance Coverage Coverage D On Auto Insurance (2024)



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  • Common types of car insurance
  • Required car insurance: liability coverage
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What Are The Different Types Of Car Insurance Coverage Coverage D On Auto Insurance (1)

12 min read Published June 05, 2024

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APA: Hawley, R. (2024, June 05). What are the different types of car insurance coverage? Bankrate. Retrieved September 05, 2024, from https://www.bankrate.com/insurance/car/coverage-types/

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What Are The Different Types Of Car Insurance Coverage Coverage D On Auto Insurance (2)

Written by

What Are The Different Types Of Car Insurance Coverage Coverage D On Auto Insurance (3)

Senior Writer, Insurance
  • • Property and Casualty
  • • Auto insurance
  • • Home insurance

R.E. Hawley is a senior writer for Bankrate. Prior to joining Bankrate’s insurance editorial team in 2024, they worked as senior writer for a popular car ownership and insurance comparison app, leading a team of over a dozen writers in creating customer-focused financial advice content on topics ranging from insurance to vehicle reliability and auto loan refinance. R.E. holds a personal lines insurance license.

What Are The Different Types Of Car Insurance Coverage Coverage D On Auto Insurance (4)

Edited by

Jessa Claeys

What Are The Different Types Of Car Insurance Coverage Coverage D On Auto Insurance (5)

Editor, Insurance
  • • Personal Lines
  • • Auto insurance
  • • Homeowners insurance

Jessa Claeys is an insurance editor for Bankrate with over a decade of experience writing, editing and leading teams of content creators. She currently covers auto, home and life insurance with the goal of helping others secure a healthy financial future. Her work has been published by several insurance, personal finance and investment-focused publications, including Jerry, BiggerPockets, 401(k) Specialist, BP Wealth and more.

What Are The Different Types Of Car Insurance Coverage Coverage D On Auto Insurance (6)

Reviewed by

Mark Friedlander

What Are The Different Types Of Car Insurance Coverage Coverage D On Auto Insurance (7)

Director of corporate communications, Insurance Information Institute

Mark Friedlander is director of corporate communications at III, a nonprofit organization focused on providing consumers with a better understanding of insurance.

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Insurance Disclosure

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Key takeaways

  • Most states require drivers to carry liability coverage, including bodily injury liability and property damage liability.
  • Uninsured/underinsured motorist, personal injury protection and medical payments coverage are optional in some states and required in others.
  • Collision and comprehensive coverage are optional, but if you finance or lease your vehicle, you may be required to carry them.
  • Depending on the carrier, other optional coverage types may include roadside assistance, rental car reimbursement, new car replacement, gap insurance and accident forgiveness.

Car insurance can be broken down into many individual types of coverage, and not every driver needs to buy each type. The most basic auto insurance types are bodily injury and physical damage liability coverage, which transfers your financial responsibility for accidents you cause to your insurance company, and optional collision and comprehensive coverages, which pays for damage to your insured vehicle if you hit another vehicle or stationary object, as well as theft, vandalism and severe weather. Bankrate’s insurance editorial team broke down the various types of car insurance coverage to help drivers make informed decisions when buying a policy.

Common types of car insurance

The most common types of car insurance can be broken down into two broad categories: required coverage and optional coverage.

In nearly every state, required coverage begins with liability insurance, including bodily injury and property damage liability coverage. In addition to liability insurance, some states require drivers to carry first-party medical coverage, such as personal injury protection or medical payments (MedPay) coverage, and/or uninsured/underinsured motorist coverage.

Optional car insurance coverage focuses on the policyholder’s insured vehicle. Collision and comprehensive coverage are both optional, but may be required by lenders for financed or leased vehicles. About 80 percent of U.S. drivers carry collision and comprehensive, according to the Insurance Information Institute (III).

What Are The Different Types Of Car Insurance Coverage Coverage D On Auto Insurance (8)
What Are The Different Types Of Car Insurance Coverage Coverage D On Auto Insurance (2024)
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