When was the last time you thought about your auto insurance needs? If you’re like most people, it was probably when you bought your car – your first car. You’ve likely carried the same insurance company or policy for most of your driving life.  

Think about it: you’ve changed over time. Shouldn’t your auto insurance also change? 

The right coverage for you as a single 22-year-old may not be the right coverage you need as a 35-year-old married parent. The key to getting the right coverage for you is understanding your options. We’ve put together this car insurance guide to help you do just that. This is a quick car insurance 101 to help you with the basics. The VIU by HUB Advisory Team is available to fill in any gaps you still have after reading through these questions and answers.  

What car insurance do you need? What are the types of car insurance?

Liability insurance – This is the base-level of auto insurance, the policy that most US states require. This will help cover the damage and injuries that you are responsible for. This is limited to damages to others and does not cover your own damages. 
Collision insurance –This policy covers damage to your car that occurs in a collision of any kind – with another car, a single car accident or if you hit a stationary object. If you have a car loan, you will be required to have this type of insurance.  
Comprehensive insurance – A comprehensive policy is what it sounds like. It covers everything, even things like vandalism or natural disasters. You’ll likely need this type of insurance if you have a car loan as well.  
Medical payments –If you are injured in an auto accident, this coverage will pay for your medical bills resulting from the accident, regardless of who is at fault. This covers anyone in the insured vehicle. 
Personal injury protection –This is Medical Payments Coverage in states that have no-fault insurance laws.  
Uninsured/underinsured motorist –While separate, these policies often overlap. They are designed to protect you in case you’re hit by someone who does not have enough coverage or is uninsured to pay for your medical or repair bills.  
Gap insurance –When you get a car loan you are responsible for paying that entire amount back to the bank. If you get into an accident and total your vehicle, your insurance company would pay you the actual cash value. Gap insurance covers the gap between the cash value and the balance of your loan, so you’re not stuck paying for a loan on a car that you don’t have.

There are a few other types of coverage that you can select. Talk to our advisory team about what other options might be available to you. 