What type of car insurance do you need?

What type of car insurance do you need -  Here are the types of auto insurance that are commonly required by the state:

• Uninsured Motorist Compensation (UM): Mandatory in some states and optional in others. Uninsured car insurance pays for medical and other costs for you and your passengers if someone crashes into you and you don't have liability insurance. A related cover, Underinsured Driver Cover, helps pay for medical expenses for you and your passengers when an underinsured driver causes an accident and sustains an injury.
• Liability Insurance: Mandatory in most states. Liability insurance covers injuries and property damages you inflict on others. A good rule of thumb is to have enough liability insurance to cover what a lawsuit might take away from you.
• Personal Injury Protection: Required in some states. Some states use a no-fault auto insurance system. In these states, you can make smaller injury claims on your car insurance regardless of who is responsible.These claims fall under personal injury protection. This is required in no-fault states and available in other states.
• Collision and Comprehensive Insurance: Required if you have an auto loan or lease. These are two different coverage types that are often sold together. Collision and Comprehensive Insurance pays for repairs to your vehicle due to issues such as car accidents, car theft, fire, floods, severe weather, falling objects, vandalism and collisions with animals.

Other Types of Auto Insurance to Consider

Getting the best car insurance can mean adding coverage for extra protection or to prevent unexpected expenses. Here are some other car insurance types to consider.

• gap insurance. Have a large car loan or lease? If your vehicle is totaled, your vehicle insurance policy can be much less than your balance.Gap Insurance pays the difference.
• Accident forgiveness. It's standard operating procedure for auto insurance companies to increase your car insurance premium after you've been in an accident. If you get "accident waiver" coverage from your insurance company, you can avoid a premium increase after your first accident at fault. Some insurers go a step further and “forgive” travel violations such as speeding.
• New car replacement. This coverage is useful if you are a driver who is unlikely to total a new car. It does not cover only the depreciation of your car, it is paid by replacing your car with a similar new car. may vary, please check the details.
• SR-22 insurance. SR-22 is not absolutely necessary, but you may need an insurance company that provides SR-22. In some states, you may be required to obtain an SR-22 form to prove you have auto insurance. Your insurance company must send this form to the state to confirm that you have insurance, but not all insurance companies offer this service.SR- 22 Requirement can arise, for example, if you have repeated traffic violations or have an accident while driving without insurance.
• Pay-per-mile insurance. If you don't drive much, car insurance per mile is a good option. Part of the premium depends on the monthly mileage. The other portion, called the base rate, remains the same each month.
• Loss of Deductible. In the event of a Collision Insurance or Comprehensive Insurance claim, the insurance benefit will be reduced by the deductible amount. Some auto insurance companies make deductibles easier by offering disappearing deductibles. Typically, this means a set reduction (such as $100) for each year that you don't bill.
• Usage-based insurance. This type of policy may reduce your car insurance premiums if you are a really good driver. This usually means no speeding, hard braking, hard cornering, etc. factors. Usage-based insurance (UBI) programs use an app or device that connects to your car to track your driving habits.
• However, you should not expect any savings from usage-based insurance. According to TransUnion's 2022 Insurance Trends and Outlook Report, less than half (48%) of drivers who have a usage-based insurance program actually realize savings. In his 30% of drivers using UBI, premiums remained the same.