If you cause a car accident, you might be responsible for any costs associated with it. This includes legal fees, medical expenses, and lost income. Without certain types of coverage, you would likely pay for these costs out of your pocket. Also, if your vehicle is damaged, the insurance covers the cost to either replace or repair it.

 

  • Umbrella policy. This can provide coverage regarding large liability claims. For instance, if you cause an accident while driving, the other driver might make a claim against you for $750,000. Your auto policy only covers up to $500,000. The umbrella policy covers the difference.

  • Medical payment coverage and personal injury protection. This coverage can help pay for medical bills you might incur if you’re involved in an accident. It might also cover your passengers’ expenses and pay for hospital visits, surgery, and doctor’s bills.

  • Uninsured motorist. Even though liability coverage is a legal requirement, some people may drive without it. This policy covers anything the other driver doesn’t carry if they are at fault for the accident. Some states require motorists to carry this coverage.

  • Underinsured motorist. Similar to uninsured coverage, this policy covers damages or injuries you sustain from a motorist who doesn’t carry enough coverage.

  • Motorcycle coverage: This is a policy specifically for motorcycles because auto insurance doesn’t cover motorcycle accidents.