Did you know that the first vehicle insurance policy was issued in 1897 in Dayton, Ohio? If you are looking for car insurance but are a bit confused because of all the types of car insurance options, you are in the right place. Our short guide below will go over the different car insurance plans available. 

Read on to learn more.

Liability Insurance

Most states have a law in place where carrying at least liability coverage is mandatory. There are two parts to liability coverage including: bodily injury liability and property damage liability. 

Bodily injury liability helps pay for costs that are related to another person’s injuries in the event that the accident is caused by you. Property damage liability means that if you cause damage to someone else’s property while driving, this coverage will pay for that damage. 


If your vehicle has damage caused by vandalism, theft, fire, or hail, comprehensive insurance coverage will help pay for this damage. You will only be responsible for paying your deductible amount. This is the amount that you choose when you set up your policy and it can range from $250 to $1000+. 

Usually having comprehensive coverage on your policy is optional per your state laws, but if you borrow a loan for your vehicle they might require you to carry comprehensive coverage while you have a loan with them. 


Whether you hit an object or you are involved in an accident with another car, having collision coverage will help pay to either replace or repair your vehicle. This is another coverage option that is usually optional unless it’s required by your lender. 


For those that have been deemed high risk drivers, the DMV might require you to carry an SR-22 insurance policy. This type of policy shows the DMV that you are financially responsible to drive. 

Normally a person is considered high risk because they have a suspended driver’s license, a DWI, a DUI, a major car accident without carrying insurance, or a major traffic violation. If you are high risk but don’t own a car and are required to carry SR22 auto insurance you have the option to purchase non owner sr22 insurance

Typically, you will need to carry this type of insurance for three years, but it varies by state. Before you are allowed to remove the SR-22 coverage, you have to be covered during the time period that the DMV requires. If you are having a hard time affording SR-22 insurance, increase your deductible to help lower those payments. 

Now You Know the Most Common Types of Car Insurance 

Now that you are aware of the most common types of car insurance options, you can make an informed decision on which insurance plan is best for your needs. 

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