Breaking Down the Different Types of Car Insurance Coverage

Are you seeking the best worldwide car insurance? Although most states require that you carry a certain minimum limit of auto liability insurance, minimum coverage may not provide the amount of protection that you truly need. Experts can review your specific situation and assets to determine the liability limits that are the best fit for you.

Many people think that automobile insurance is a simple coverage that is standard across all states and carriers, but there are actually numerous different types of coverage, all of which can play an important role in protecting you and your vehicle from costly claims. These are the types:


The standard coverage; this provides protection against claims, property damage or bodily injury to a third party that you or a member of your household accidentally causes while driving your vehicle. Note that this coverage applies only if the driver is considered legally responsible for the damage.

Medical Payments

This coverage provides you, your family members and passengers in your car necessary medical and dental services after an accident, regardless of who’s at fault. This is also applicable as a pedestrian.

Personal Injury Protection 

This coverage provides no-fault protection to an individual of whom is required to carry it. It includes coverage for medical, surgical, dental, hospital, work loss, and certain other related expenses, and extends to an accident as a pedestrian.

Uninsured Motorists

You know that it’s important to have insurance, but what if you get into an accident with someone who doesn’t feel the same way? Uninsured motorists coverage pays for injury expenses incurred if you, family members or passengers be involved in an accident with an uninsured motorist. It also provides protection for a hit-and-run accident or with a driver who does not meet legal insurance requirements.

Collision Coverage

This coverage pays for damage to your car caused by accidental impact with another vehicle or object, or if your vehicle overturns. The maximum amount paid is limited to the actual cash value of your vehicle, commonly referred to as  “local market value”. 

Comprehensive Coverage

As a counterpoint to collision coverage, comprehensive covers damage caused by a situation other than a collision. The maximum amount paid is limited to the actual cash value of your vehicle less the “other than collision” deductible. Covered events can include:

  • Breakage of glass
  • Falling objects
  • Fire
  • Theft
  • Windstorm
  • Hail
  • Water
  • Flood
  • Malicious mischief
  • Vandalism
  • Impact with a bird or animal

Additional Coverages

  • Towing and Labor – Pays for towing and labor costs each time your car is disabled. 
  • Rental Reimbursement – Covers rental costs if your vehicle is damaged by a situation covered by Comprehensive or Collision coverage, or out of commission for over 24 hours.
  • Gap Insurance – Covers the difference between the actual cash value of your car at the time of the accident and the amount you actually owe on the lease or loan.

Obtain car insurance that encompasses all that your unique auto protection calls for.


About Moody Insurance Worldwide

Moody Insurance Worldwide, a division of Moody & Associates that was founded in 1914, is a leading provider of risk management programs and insurance coverage to individuals and businesses across the East Coast. We write all sizes of businesses, with technical expertise in many key industry areas, and provide personal insurance programs for estates and high net worth individuals. Our licensed, experienced commercial account managers can work with you to determine the coverage that you need at a competitive rate. Contact us today at (855) 868-0170 to learn more about what we can do for you.