Auto insurance is a necessary expense for all vehicle owners. It helps protect you financially in case of an accident or theft. In this blog, we’ll break down the various types of auto insurance policies to help you decide which one is right for you.

1.Liability Insurance
Liability insurance is the most basic type of auto insurance policy. It covers the cost of damages and injuries you may cause to others in an accident. This type of insurance is mandatory in most states, and the minimum coverage required varies from state to state.
Liability insurance has two types of coverage:
Bodily injury liability: This coverage pays for the other party’s medical expenses, lost wages, and pain and suffering in an accident you caused.
Property damage liability: This coverage pays for repairing or replacing the other party’s property damaged in an accident you caused.

2.Collision Insurance
Collision insurance covers the cost of damages to your vehicle in an accident, regardless of who is at fault. This policy is optional but is highly recommended if you have a newer or more expensive vehicle. Collision insurance also covers damages caused by hitting a stationary object, such as a tree or a wall.

3.Comprehensive Insurance
Comprehensive insurance covers damages to your vehicle that are not caused by an accident, such as theft, vandalism, or natural disasters. It also covers damages caused by hitting an animal. This type of insurance is optional but recommended if you live in an area prone to theft or natural disasters.

4.Personal Injury Protection (PIP)
Personal Injury Protection (PIP) insurance covers the medical expenses and lost wages of you and your passengers if you are involved in an accident, regardless of who is at fault. This type of insurance is mandatory in some states and optional in others.

5.Uninsured/Underinsured Motorist Insurance
Uninsured/Underinsured Motorist insurance covers the damages and injuries you may sustain in an accident caused by an uninsured or underinsured driver. This type of insurance is optional but recommended if you live in an area with many uninsured or underinsured drivers.
In conclusion, it’s essential to understand the different types of auto insurance policies available to decide which one is right for you. Consider your driving habits, the value of your vehicle, and the likelihood of accidents in your area before choosing a policy. Feel free to speak to an insurance agent to help you make the right decision. (978) 475-0400 https://howeins.com/contact-us/