Understand Your Auto Insurance Coverage
Car Insurance : Most states require drivers to have liability insurance, collision insurance, and comprehensive insurance. What you need to know about each is listed below.
Most standard auto insurance policies include bodily injury liability, personal injury protection, property damage liability, collision, comprehensive, and uninsured/underinsured motorist coverage, although some states require different types of insurance and Other choices (like gap auto insurance) can be made. In addition, policy limits and premiums will vary depending on the type of coverage purchased.
Bodily injury liability
Injury to another person that you, the named driver or policyholder, are responsible for is covered by bodily injury liability insurance. When borrowing a friend or family member’s car with their permission, you and anyone else on your policy are automatically covered.
In the event of a major accident, you could be sued for a substantial amount of money, making adequate liability insurance a necessity. To protect valuables like a house and savings, policyholders should invest in more coverage than is required by law.
Medical payments or personal injury protection (PIP)
Injuries sustained by the policyholder or their passengers are covered by this insurance. Medical bills, lost wages, and the cost of finding a replacement for lost services are just some of the things that personal injury protection (PIP) can pay for in the event of a car accident. It could even apply to the price of a funeral.
Property damage liability
If you or someone else using your car without your permission causes damage to someone else’s property, this insurance will help pay for the repairs. Typically, this refers to repairs for another driver’s vehicle, but it can also refer to repairs for lamp posts, telephone poles, fences, buildings, and other structures that your vehicle may have hit.
If your vehicle is damaged in an accident where it collides with another vehicle or an immovable object like a tree or telephone pole, your collision coverage will help pay for the repairs (note that collisions with deer are covered under comprehensive). Pothole damage is also included in the coverage.
In most cases, a deductible is not included in the purchase of collision coverage. If you have collision coverage, your insurance company will pay for the cost of repairs to your car, less any deductible you may have set. If you are found not at fault, your insurance company will seek reimbursement from the other driver’s insurer; if successful, you will be refunded the full amount paid by your insurer, including any deductible you paid.
This protection will pay for repairs or replacements if your car is broken into or damaged by something other than a collision. Instances of fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals like birds or deer are all included. Your cracked or shattered windshield will be repaired at no cost to you.
Although some insurance companies may provide coverage for broken glass without charging a deductible, comprehensive policies are more commonly sold with their own deductibles.
Uninsured and underinsured motorist coverage
In the event that you, a member of your household, or your designated driver are injured in a car accident with an uninsured or underinsured motorist, underinsured motorist coverage will reimburse you for your losses. In addition to protecting you as a pedestrian if you are hit by an uninsured or underinsured driver, this coverage also protects you as a covered driver if you are the victim of a hit-and-run.