Liability car insurance is almost always mandatory by state law and provides reimbursement for damage and injuries caused to other vehicles, drivers, and passengers.
What does collision insurance cover? It covers damage caused to your own vehicle in an accident, regardless of fault.
What does comprehensive insurance cover? It covers damage or losses caused by threats to your vehicle other than collision, including windshield breakage, hail damage, theft, etc.
What does gap insurance cover? It covers the remainder of what's owed on your auto loan if your vehicle gets stolen or totaled in an accident and its current depreciated value does not match the amount due on the loan.
Car warranty insurance, or your car's extended warranty, acts as an insurance policy that provides coverage for future mechanical failures of your vehicle.
Towing and roadside insurance can provide reimbursement if your car breaks down on the side of the road and you need a tow or other assistance to transport your vehicle and yourself.
This provides one driver with minimum liability insurance to protect against costs associated with bodily injury or property damage to others. Additional drivers cannot be added to these policies.
These policies typically provide liability coverage for vehicles with salvage or rebuilt titles. It can be harder to find full coverage, including comprehensive and collision insurance, for salvage title cars.
This coverage can pay for a replacement vehicle of the same make and model if your car is stolen or totaled. Coverage is typically only active for one to three years after purchase or within a set mileage limit.
This coverage can reimburse drivers for medical expenses and vehicle damage if they're hit by an at-fault driver who doesn't carry adequate car insurance. It can also pay for damages after hit-and-runs.
In the 38 "tort states," drivers with tort insurance policies have unrestricted rights to sue an at-fault driver after an accident to get reimbursed for medical expenses, car repairs, lost income, and additional harm.
This coverage can pay for medical expenses and lost wages for you and your passengers after an accident, regardless of fault. PIP insurance can also pay for rehabilitation and other related expenses if you're injured in an accident.
This coverage can pay for incidents that occur while actively using your personal vehicle for a ridesharing service like Uber or Lyft. Depending on the policy, it might include collision, liability, comprehensive, and other coverages.
These policies are known as temporary car insurance and can be bought for short periods of time, such as a single day, a couple of weeks, or a few months. It's often needed by uninsured drivers who borrow or rent a vehicle.
Full coverage car insurance is not an official industry term. It refers to a bundled package of important protections, including liability, collision, comprehensive, uninsured/underinsured motorist, and often medical payments or personal injury coverage.
