Auto insurance policies include a variety of coverage options, each tailored for different situations. Understanding the policies available will help protect the value of your investments from whatever the road might throw your way. Below are just a few of the most common types of car insurance you might need.

What Are Different Types of Auto Insurance?

1. Liability Coverage

Most states, including Montana, require every driver to carry a minimum amount of liability insurance, which protects other motorists if you cause an accident. In Montana, you’re required to carry at least $25,000 in liability coverage per person, for a total of $50,000 per accident. Your policy should also include $20,000 in property damage coverage, which covers the cost of the other driver’s auto repairs.

While carrying the minimum coverage fulfills the legal requirements, it may not cover the costs of a serious crash. If the damages exceed your policy limits, the other driver or their passengers may be able to take action against you to recover their losses. For maximum protection, most experts recommend carrying liability coverage equal to the total value of your assets.

2. Collision Coverage

Liability protection will cover the other driver’s damages if you cause an accident, but repairing your vehicle is your responsibility. Collision insurance pays for damage to your car after an accident in which you’re at fault. While collision coverage isn’t mandated by law, your lender will probably require you to carry it if you financed a vehicle.

3. Comprehensive Coverage

Collision and liability coverages protect you from the hazards of the road, while comprehensive insurance shields you from everything else. Comprehensive insurance covers everything from hail damage to fire and extreme wind events.

If a storm blows a tree over onto your car or you hit a deer, these policies will cover the cost of repairs. Comprehensive coverage also protects you from theft, vandalism, or other criminal activity.

4. Uninsured or Underinsured Motorist Coverage

If you get into an auto accident and the other person is at fault, their insurance should cover the costs of medical treatment and repairs. However, if they don't have liability insurance and can't pay, you may need to cover the bills yourself. You'll be in a similar situation if the motorist is underinsured, which is when a driver doesn't have enough insurance to cover the costs of damage. Uninsured/underinsured coverage will fill in the gap, ensuring that you get compensation. 

5. Medical Payments Coverage  

This is an optional coverage that you can add to your auto insurance policy. It will help pay for medical expenses, whether your own or a passenger's, regardless of who was at fault for the accident. It'll cover costs, including health insurance co-pays and deductibles, X-rays, surgery, hospital visits, nursing services, and ambulance fees. While it's not required by law, medical payments coverage can protect you against hefty bills.  
 

Since 1986, Grachek Insurance has been dedicated to helping drivers throughout Kalispell, MT, get the protection they need. Their agents work with a wide range of auto insurance providers and will sort through the options to find the option that’s best for you. Visit their website for more on their wide range of services, or call (406) 755-4000 to request your free quote.