ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Basic Types of Auto Insurance

Updated on March 12, 2011

There are different types of auto insurance plans available in the market today. In the US, auto insurance is a legal requirement; it is not a choice because if it were, no one would have seen the need to have one in the first place. The cost of auto insurance will vary depending on the type of insurance coverage and your insurer of choice. Basically, the higher the coverage the higher you will pay, and vice versa. This difference in cost and type of insurance comes as a blessing in disguise so to speak to different car owners as they will end up saving a lot depending on the type of insurance plan they opt for, and based on the type of car they seek to insure. 

The first type of auto insurance is the liability coverage. This type of insurance covers all damages and costs incurred to a third party when you are at fault. The first type of liability coverage is known as bodily injury liability, which, as the name would suggest, covers the cost incurred by a third party in terms of medical or funeral expenses in the event of an accident that you are at fault. By the same token, if a third party files a legal suit against you because of an accident that you are at fault, the liability coverage will provide you the necessary legal defense, without you having to go back to your pocket. Note the keyword here, “only when you are at fault”.

The other type of auto insurance that falls under the liability category is the property damage liability policy that covers the cost incurred when repairing or replacing damaged property in the event of an accident when you are at fault. The other type of insurance is known as collision or comprehensive coverage, which, as the name would suggest, covers almost everything under different circumstances. In the event of an accident, whether you were driving or someone else was, your insurer, under the comprehensive insurance coverage will cover all costs incurred as a result of that accident. 

Further, the comprehensive coverage will cover the cost in the event that your car is damaged by natural disasters such as floods or fire, or if it is stolen. Generally though, it is important to realize that specific insurance coverage is limited to the specific terms and conditions stipulated in the policy. Thus, you need to confirm with your insurer of choice for details of what is, and what is not covered before appending your signature as it will be a legal binding agreement, for a minimum period of at least 6 or 12 months.


Submit a Comment

No comments yet.


This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

Show Details
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)