Auto Insurance Explained in Simple Terms
By Brooke Bailey
Auto insurance, is insurance that you purchase for your cars, trucks, motorcycles and boats etc. It provides you with protection from losses that may incur as a result of a car accident. While this may sound simple enough to understand there are many types of auto insurance policies available to you and it can be rather confusing. Your coverage level and types will vary depending on the policy that you choose. In general, these are the most common types of auto insurance programs available to you:
The Different Auto Insurance Coverage Available
Collision Coverage: insures your vehicle against repairs if the vehicle is in an accident or the cost of purchasing a new vehicle if yours is damaged beyond repair.
Comprehensive Coverage: insures your vehicles against the cost of purchasing a new vehicle should yours be stolen or destroyed in a fire.
The Different Auto Insurance Coverage Protection
Personal Injury Protection (PIP) - insures against medical expenses and lost wages related to ownership or maintenance of a vehicle.