What Are Car Insurance Tiers?

What is Car Insurance Tiers?

Car insurance tiers are a way of categorizing the different levels of coverage available to policyholders. The tiers range from Basic to Comprehensive Plus and each tier provides a different level of coverage. Depending on the type of coverage you select, you can expect to pay higher premiums for higher tiers.

What Does Each Tier Mean?

Basic coverage, also known as liability coverage, is the most basic type of car insurance. It covers damages to other people’s property and medical bills for those injured in an accident caused by the policyholder. Basic coverage does not cover damages to the policyholder’s own vehicle.

Intermediate Coverage

Intermediate coverage, sometimes referred to as “split-limit” coverage, provides a combination of basic and additional coverage. It typically covers damage to the policyholder’s vehicle and additional medical expenses for those injured in an accident. Depending on the policy, the additional coverage may also include rental car reimbursement, towing, and road-side assistance.

Comprehensive Coverage

Comprehensive coverage is the highest level of coverage available. It covers damage to the policyholder’s vehicle, as well as damage to other people’s property. It also covers medical expenses for those injured in an accident. Comprehensive coverage typically includes rental car reimbursement, towing, and road-side assistance. It may also include coverage for lost wages and other expenses related to an accident.

Comprehensive Plus Coverage

Comprehensive Plus coverage is the most comprehensive type of coverage. It covers everything under Comprehensive coverage, as well as additional coverage such as car rental coverage, personal property coverage, and even coverage for lawsuits related to an accident. Comprehensive Plus coverage is typically more expensive than the other tiers.