Comparing Types of Car Insurance

This is part of a sponsored series of posts. 

How long have you been with your current car insurance? You’ve most likely had the same kind of car insurance for a long time now. But do you know what is actually covered in your policy, or even better, do you know what type of policy you have? If your spouse handles that information, you might not even know what you have (I’m guilty…) So together with our Wisconsin Chevrolet dealer, we take a look at what is available out there and compare it with whichever type you might have!

Typically there are five main forms of car insurance here in Minnesota. Here is a breakdown of each one;

Liability – Let’s say you’re in an accident that is your fault, what would liability insurance cover? It would cover any of the other party’s damaged property along with any medical bills resulting from the accident. It does not cover any of your own injuries or passenger’s either. In addition, it doesn’t cover any damage to your vehicle.

Collision – In the event that you are in an accident (with another vehicle, or any other property) the collision insurance would cover the damage to your vehicle. This type of insurance isn’t required by law, but is usually found with a loan or a lease vehicle.

Comprehensive – Usually partnered with collision insurance, comprehensive insurance covers damages from things like natural disaster (or damage from the weather), and things like hitting a deer,  or theft.

Personal Injury Protection – You may also see this referred to as PIP, and is also known as ‘no-fault insurance’. It covers the injuries incurred by an accident, regardless of whether it was your fault or not. This also covers any income you may have lost as a result of the accident.

Uninsured/Underinsured Motorist – If you happen to get in an accident with a vehicle who does not have any car insurance (this is against the law but it does happen unfortunately) or doesn’t have enough coverage, this type of coverage will cover damage to your vehicle and any medical bills.

There are many other insurance offerings out there that you can add on to your policy. Do your research before you sign up for a certain coverage, and know what is covered in case anything does happen!