types of auto policies
These types of insurance are less common, but they can be inexpensive additions to your auto policy. 1  Guaranteed Auto Protection (Gap): Your vehicle depreciates over time, including the moment you drive it off the lot. 2  Personal Umbrella Policy (PUP): PUP insurance isnât car insurance in the strictest sense.
Common Auto Insurance Coverage. Understand the common types of auto coverage and get the insurance you want, to fit your budget. Liability Coverage. There are two types of liability coverage - coverage for Bodily Injury and coverage for Personal Property. Most states require you to carry a minimum amount of liability coverage, or post a bond, to register your vehicle or obtain a driver's license.If youâre legally responsible, or âliableâ for damages, Liability coverage helps pay for them.
Collision: This type of coverage will pay to fix or replace your own vehicle after an accident. Coverage extends to damage caused by collision with an object (e.g., a tree or house) or an accident in which no object was involved (e.g., if your car flips).