Types of Car Insurance Coverage - What You Need and Why

Car insurance is purchased to protect cars, trucks and other vehicles against damage caused by another vehicle. It also protects from bodily injury that occurs. A certain level of coverage is required by law. This level varies from state to state. Missouri requires 25/50/10 liability insurance. The bodily injury requirement minimum is $25,000 per person and up to $50,000 per accident. The property damage minimum is $10,000 per accident.

There are more types of insurance that can be purchased above the state minimum coverage. Collision insurance is generally purchased to cover any given vehicle against the damages that occur as a result of an accident caused by an insured driver. Collision insurance will pay for the damages on the vehicle or cash value of the vehicle if the amount of the damages is greater than the value of the vehicle. While optional, it is not uncommon for a lender to insist collision insurance be purchased on the vehicle until the car loan is paid off. Comprehensive insurance covers damages to a vehicle that do not occur as the result of a collision, such as theft, weather or vandalism. Both collision and comprehensive insurances require a deductible to be paid to the insurance company before they will pay any of the remaining expenses.

Uninsured and underinsured motorist insurances cover damages that occur as the result of a collision with a driver carrying no or not enough insurance to cover the damages. If the injured driver has uninsured or underinsured motorist insurance, then their insurance company will pay for the vehicle damages and medical expenses.