The key to having peace of mind when you're on the road is by having the right auto insurance in place. This can provide you with financial protection if you're involved in an accident. Of course, it's essential to know what your options are when it comes to making this important choice. Being aware of the various types of insurance coverage can be helpful to you.

Type #1: Comprehensive

One of the most costly policies you can get for your car is comprehensive. This is typically required if you have a lien on your vehicle because it provides your lender with the security that the loan will be repaid if you're in an accident.

Some of the many things comprehensive policies will pay for are listed below:

1.    Theft – You will be covered if your car is broken into and your personal belongings are stolen.

2.    Accident damage – Being involved in a wreck may require you to have extensive repairs or even a car replacement; but, comprehensive policies will help pay for these damages.

3.    Vandalism – This deals with your car being damaged by others. For instance, your policy may provide coverage if your car is keyed.

4.    Storm damage – Hail or excessive rain can cause a lot of problems with your vehicle. For instance, if your car gets dents from hail, your policy may cover these damages.

Type #2: Liability

If you want a policy that doesn't cost a great deal, you should look into getting liability coverage. This is the most basic type of insurance you can get, and it's typically required in most states for you to drive.

The good news is liability will cover any injuries the other driver may have and property damage if you're at fault for the accident. Having this coverage is a great idea if you own an older model vehicle.

Type #3: Collision

One type of policy you may want to consider getting is collision coverage. This will pay for any damage that you have to your car if you're at fault for the accident.

Collision coverage is great to have to ensure you're always covered if you're ticketed for the crash, and it can be the key to avoiding financial loss due to a collision.

Taking time to do what you can to protect yourself at all times while driving is essential. This can help you have a greater peace of mind and may be legally necessary for the area you live. Be sure to work closely with your insurance agent so they can assist you in finding the best policy to meet your needs.