Understanding the Basic Types of Auto Insurance

The basic types of automobile insurance may be regulated on a state-by-state basis, so you may expect basic automobile insurance coverages to vary on a state-by-state basis as well. Your exact location may be a factor in some types of auto insurance, and other types of insurance may use statistics based on regional information. When you understand why the basic coverages change you may be better able to maintain the auto insurance coverages for the types of auto insurance that best fit your individual needs.

Location Makes a Difference

Your address may affect all types of insurance. The different types of auto insurance could be based on statistics that incorporate ZIP codes. Insurance companies may use this kind of information to determine insurance premiums, according to the associated risks.

Basic Car Insurance

Most states may require you to have minimum types of auto insurance and auto insurance coverage that includes bodily injury liability and property damage liability. These two types of auto insurance and auto insurance coverage may typically be sold as a package, with the option of raising the payable limits on either one. As of March 2011, sixteen states may use a no-fault system of auto insurance, where each driver’s auto insurance coverage pays for their passengers and themselves, and then fault is negotiated between insurance companies afterward. No-fault insurance is also known as personal injury protection, or PIP, and may include compensation for lost wages. Also, read more about liability car insurance.

If you’d like to find out more information about the basic types of auto insurance policies, get quotes! By filling out a simple form, you can get free, no-obligation quotes.