Car insurance is a bit like the fire extinguisher in your home. You hope you won’t ever need it, but it’s reassuring to know that it’s there. However, not every type of car insurance policy will cover what you think it will. 

The type of car insurance policy you have may dictate whether or not you can successfully file a claim after an incident

Drivers often choose their car insurance policy based on factors like budget, vehicle type, and price comparisons. However, not every type of car insurance policy will go the distance in the event of a crash or theft.

The types of car insurance vary from minimal coverage to comprehensive policies. Here are some of the most common coverage types in the United States, per Allstate.

• Uninsured motorist
• Liability coverage
• Collision coverage
• Personal injury coverage
• Comprehensive insurance

Tragically, there are millions of uninsured or underinsured drivers on American roads. However, most states mandate that drivers carry liability coverage. Liability will often cover property damage and, more importantly, bodily injury. That said, don’t expect liability coverage to reimburse you for an expensive total-loss event.

On the other hand, a comprehensive car insurance policy could cover your vehicle in the event of collision, theft, fire, vandalism, and some “acts of God” events. However, drivers might be surprised to find that new car depreciation may mean a lower payout in the event of a loss than they spent or owe on the vehicle. For instances like these, Gap insurance can come in handy.

However, these aren’t the only forms of coverage for your vehicle. For instance, classic car owners can get insurance policies specific to their old vehicles. Keep in mind, however, that classic car policies, while affordable, typically have strict parameters. Incidentally, a policyholder may not have coverage for an incident resulting from commuting in a classic.