Car insurance is a fast-growing industry with tons of advertisements on television, online, in magazines and newspapers. With so many car insurance companies around, it can be hard to find one that is right for you. Before looking for an insurer, get to know a bit more about the levels of insurance. Car insurance companies currently offer six different types of cover. It is important that you learn about each of these types, so that you can choose the types that are best suited to your needs.

“Property Damage Liability” is a type of car insurance that covers any damage caused to another by your vehicle, irrespective of whether it was you or somebody else driving your car. This type of cover is affordable and also covers damage to other kinds of public and private property such as homes, telephone poles, and fences. “Body Injury Liability” covers any injury caused to somebody else by your vehicle. The policyholder and any family members included in the policy are also covered. It applies when you cause injury while driving you own car or driving another car with permission from the owner.

Collision cover is car insurance that pays out if your car sustains damage during a collision with an object or another car, and even covers damage because of potholes. If the accident is as a consequence of your own fault, coverage will pay the cost of repairs for your car, minus the deductible. The deductible in this case is between $250 and $1,000, usually.

Comprehensive cover is a type of car insurance that will pay out if somebody steals your car or if it sustains damage because of forces other than an accident involving another car. This cover includes damage caused by natural disasters such as earthquakes, hail, tornadoes, falling objects and fire. The deductible in this case is usually between $100 and $300.

Medical Payments, otherwise known as “Personal Injury Protection”, covers medical bills for passengers who were injured in the accident, and may even cover rehabilitation costs, funeral costs, and lost wages. “Underinsured and Uninsured Motorist Coverage” pays for damage done to your car if you were in an accident that was a hit-and-run, or if the driver is not insured.

Now that you have a better understanding of the types of car insurance that companies offer, think about what you need to be covered for, and find an insurer that covers what you need at an affordable rate.

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