Driving a car comes with lots of risks, but the right car insurance policy can cover you in case of an accident. Understanding the basics of Car insurance coverage is key to making sure you have the right protection for your vehicle and yourself. In this article, we’ll take a look at what basic car insurance covers and how it works. 

What Is Covered by Basic Car Insurance? 

Car insurance policies typically include six different types of coverage. The most common are liability, collision, comprehensive, personal injury protection (PIP), uninsured/underinsured motorist, and medical payments coverage. Let’s break down each of these types of coverage so you know what’s included in a basic car insurance policy: 

Liability Coverage  – Liability coverage pays for any damage or injuries you cause to other people or their property while driving. It includes bodily injury liability and property damage liability. Bodily injury liability covers medical expenses due to injuries sustained in an accident caused by the insured driver. Property damage liability covers expenses related to damages caused to someone else’s property due to an accident caused by the insured driver. This type of coverage is required by law in most states and is usually the first type of car insurance policy purchased by drivers. 

Collision Coverage – Collision coverage pays for damages that occur when your vehicle collides with another object such as another vehicle, a wall, or a tree. This type of coverage is optional but can be beneficial if you want more extensive protection for your vehicle in case it gets damaged in an accident. Additionally, many lenders require borrowers who are financing their cars to carry collision and comprehensive coverages on their vehicles so they can recover their losses if they’re not able to make payments due to an accident-related issue with their cars. 

Comprehensive Coverage – Comprehensive coverage pays for any losses that occur due to something other than a collision such as theft, vandalism, fire, hail storm damage, etc. Just like collision coverage, this type of policy is optional but may be required by certain lenders depending on the terms of your loan agreement with them for financing your car purchase.  

Personal Injury Protection (PIP) – Personal injury protection (PIP) pays for any medical expenses related to an accident that involve the insured driver regardless of who was at fault for causing it. PIP also includes lost wages due to injuries sustained from an accident as well as death benefits if necessary. This type of policy typically only applies if you live in a no-fault state where drivers are not allowed to sue one another after an accident occurs; however some states do offer PIP policies even though they are not no-fault states so check with your local laws about whether PIP is available where you live before deciding whether or not it makes sense for you to purchase this type of policy as part of your basic car insurance package .  

    Uninsured/Underinsured Motorist Coverage – Uninsured/underinsured motorist coverage pays for any damages caused by drivers without enough insurance or no insurance at all when involved in accidents with them while driving your own vehicle covered under this policy.. Medical Payments Coverage – Medical payments coverage helps pay for medical bills resulting from accidents regardless who was responsible for causing them as long as they occurred while driving one’s own vehicle covered under this policy..  

Buying basic car insurance provides peace of mind knowing that you’re protected against unexpected costs associated with owning and operating a vehicle on public roads and highways; however each type mentioned above provides different levels of protection so make sure you understand exactly what’s includedin each one before signing up for it so you have the best possible level of protection available givenyour budget constraints . Ultimately understanding these six types will help ensure that you have adequate protection whenever behind the wheel!