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What Are the Three Types of Auto Insurance?

By July 28, 2023No Comments

Fremont Auto Insurance Explained

There are three main types of automobile insurance. Understanding what each type of insurance covers can help you make the best decisions when creating a policy that will protect you the most. Accidents happen, and Fremont, NE, is no exception. The right auto insurance policy can protect your vehicle and your financial assets.


Most states require liability. It covers other people’s expenses if you cause an accident. Property damage liability will protect against damage you cause. Bodily injury liability pays for medical bills. If you are sued, the insurance company stands between you and financial loss up to the amount stated in your policy. A good rule is to have coverage high enough to protect your assets.


Collision insurance will pay for damage to your vehicle if you cause an accident or the other driver is at fault. State law does not make it mandatory, but if your car is financed or leased, your lender will require it. Regardless of the cause, your car can be repaired up to policy limits. You can get further coverage by opting for a gap policy that will make an allowance for depreciation so you can purchase a new car if yours cannot be repaired or repairs exceed the value of your vehicle. Specific extensions can save you from a catastrophic loss if you have a vintage or high-priced vehicle.


Comprehensive car insurance pays to repair or replace your vehicle when it is damaged by something other than an accident. If your car is in a storm, vandalized, or stolen, you will have protection. It is not required by state law but is usually mandatory for leased or financed vehicles.

Other policies will further your protection, and the agents at Eric Luebbe Insurance are here to help you find the best policy for your specific needs. Request your auto insurance quote in the Fremont, NE, area now!