Every auto insurance policy is made up of numerous types of coverages and it is extremely important to know exactly what these coverages will provide. Every state in the United States has different regulation on auto insurance coverages, but below you will find general explanations of the most common types of auto insurance coverage.
Auto Liability Coverage
Every part of the United States requires a minimum auto liability coverage in order to legally operate a vehicle. While auto liability coverage will not cover your own expenses related to property damage, it will cover others’ property damage in an accident to which you are at fault. Auto liability insurance will cover you when operating your own vehicle or when operating another person’s vehicle with permission from the owner.
Auto liability insurance has two types of coverage; Bodily Injury Liability and Property Damage Liability. Bodily injury liability will covers medical expenses, lost wages etc. of other parties’ in an accident in which you are at fault. Property damage will cover the other parties’ property that was damaged in an accident to which you are at fault.
Auto liability coverage is a staple part of auto insurance coverage so it’s important to take the time to speak to an agent and find the right coverage to fit your needs.
Comprehensive auto coverage will cover any losses or damage to your vehicle aside from actual automotive accidents. Comprehensive auto coverage will cover your vehicle if it is damaged by virtually anything else (natural disasters, vandalism, theft, etc.) Pair your comprehensive auto coverage with other coverage to get full protection for you property.
Collision coverage will cover damage done to your vehicle in an auto accident. Accidents that are eligible for collision coverage include collision with another vehicle, an object, a building and in the case that your vehicle is rolled over. As well, collision coverage will help to replace your vehicle if it has been totaled. Talking to an agent can help you find the right amount of collision coverage for your vehicle.
Personal Injury Protection (PIP)
Personal injury protection is mandatory in some states in order to operate an automobile. PIP coverage will not only cover bodily injury done to you by result of an accident, but will cover the passengers in your vehicle or anyone driving your vehicle with your permission as well. PIP will also cover a large portion of costs for rehabilitation, lost earnings, funeral costs and more. Although personal injury protection isn’t required in all states, it is a smart coverage to have as part of your policy.
Underinsured Driver Coverage
In the case that you are involved in an accident where the other driver is at fault and does not have extra insurance to cover the total of your losses, underinsured driver coverage will help you. Underinsured driver coverage will help by paying for medical expenses and sometimes lost earnings, property damage, and more. While most states don’t require it, underinsured driver coverage is also a smart precautionary coverage to add to your insurance policy.
Uninsured Driver Coverage
Uninsured driver coverage will help cover you in the event that you are in an accident with a driver that carries no insurance, carries too little insurance by state regulation, or flees following the accident. Like underinsured driver coverage, uninsured driver coverage will help cover medical expenses for you and the passengers in your vehicle. Depending on your policy, your uninsured driver coverage may also help cover the cost of a rental car or also damage to your vehicle.
Buying auto insurance, especially for the first time, requires some research and it never hurts to have someone to help you. If you are interested in learning more about the above auto coverages, or have questions about other auto insurance coverages, please don’t hesitate to contact me today. Having a knowledgeable professional on your side can be all that you need to find the right auto insurance policy for you.