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What Are the Main Types of Auto Insurance Coverage?

Auto insurance is mandatory in most states. Thus, it is important to know the different types of auto insurance before purchase. Good auto insurance provides financial protection in case of unexpected accidents. You will have to know your options to know which type of insurance works best for you. Here we discuss the main types of auto insurance and the details involved in each.  1. Liability Insurance Liability insurance covers the cost of injuries and property damage from a covered accident that is determined to be the result of your fault/negligence. Most of the U.S states have a minimum requirement for the amount of liability coverage for a person to drive the car but it is best to have liability insurance that exceeds this minimum limit. This protects you from paying a large amount of money because of the exceeded policy limit.  Liability insurance usually covers:  • The repair or replacement cost of the damaged property • Medical bills due to hospitalization or treatment o

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