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INVESTOPEDIA PERSONAL FINANCE Six Types of Car Insurance Coverage Some are optional and some are required, depending on where you live.

By REBECCA LAKE Updated January 16, 2022 Reviewed by CHARLENE RHINEHART A car insurance policy can safeguard you from financial losses in the event that you are involved in an accident.

There are typically six different types of coverage included in auto policies. Some of these coverages may be required, while others may be optional, depending on the state in which you live.

Important Takeaways In the event of an accident that causes property damage, injuries, or the death of another person, having car insurance can protect you financially.

There are many different kinds of coverage in a car insurance policy that cover different risks.

State law mandates some kinds of auto insurance coverage, while others are optional.
You might also want to think about other kinds of optional coverage.

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