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Types of Auto Coverage…And Why You Need Them

Updated: Nov 5, 2020



Auto insurance is not so much about protecting your car in the event that you get into an accident. It’s more about protecting you financially — and legally if need be. It’s important to understand that auto insurance is comprised of several types of coverage; some are optional but others are required by law.

Liability insurance: Required by law in most states. If you cause a car accident, liability coverage helps pay for the other person's expenses. Auto liability coverage comes in two forms: bodily injury liability coverage and property damage liability coverage. Drivers in most states must have both types of coverage.


Personal injury protection (PIP): Covers medical expenses regardless of who's at fault, and often includes lost wages. Depending on the state in which you live, PIP may be an available option, or a required policy add-on.


Collision insurance: Provides coverage to repair or replace your vehicle if it’s involved in an accident. Collision insurance isn’t usually mandated by law, but it can be helpful if you don’t have the cash on hand to repair or replace your car.


Comprehensive insurance: Provides coverage for damage to your vehicle caused by something other than another vehicle. Comprehensive insurance is what protects you from theft, vandalism, and weather damage.


Uninsured/underinsured motorist insurance: Provides coverage if you’re in an accident with someone who is driving with no or too-little insurance, and the accident is their fault. Since they don’t have any or enough insurance, this coverage pays instead.


Gap insurance: Provides coverage for people who have auto loans. If your car is totaled in an accident or stolen, most car insurance policies will pay you the actual cash value of the car, which could be less than what you still owe on the loan. Gap insurance pays for the difference between the actual cash value of the car and what you still owe on the loan.


For protection and peace of mind

When you choose Doren Insurance, you are partnering with a team of insurance experts who live and work in your community and are 100% committed to providing you with a comprehensive personalized coverage plan at an affordable rate. Home, auto, business or life insurance, Doren has you covered. For more information on our services, give us a call today.


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