What is in an auto insurance policy?

When you’re looking at getting an new auto insurance policy, it may be a good idea to know what’s in the policy you’re getting. There are different types of auto insurance coverage and they can protect you in various way from your passengers to your car if you’re involved in an accident.

There are 6 common forms of car insurance. They can include auto liability, uninsured motorist coverage, comprehensive auto insurance coverage, collision auto insurance coverage, medical payments, and personal injury protection. Some of these coverage are optional and some are mandatory, depending on where you live.

LIABILITY COVERAGE

In most states auto liability insurance coverage is mandatory. There are two main components in auto liability coverage; 

1. Bodily injury liability – this covers the other drivers injuries. 
2. Property damage liability – this will cover the other persons property if involved in an accident. 

UNINSURED AND UNDERINSURED MOTORIST COVERAGE

This portion of your auto insurance will protect you if the other driver doesn’t have auto insurance or is underinsured. It can help to cover medical costs, and to pay for repairs to your car. For example if you’re hit by a driver that is underinsured, it would mean they have car insurance but the liability limits within their policy isn’t enough to cover the fees resulting from the accident.

COMPREHENSIVE COVERAGE

Comprehensive auto insurance is designed to cover damage to your vehicle. It can cover you for events such as theft, hail, vandalism, and fire. Comprehensive car insurance can help to repair or replace your car, up to it’s cash value if the damage is caused by a covered peril. 

If you have a loan on your vehicle, the lender may require you carry comprehensive coverage. Although, comprehensive auto insurance coverage is optional in other circumstances. 

COLLISION COVERAGE

Collision coverage will help to protect you if you’re involved in an accident or you hit an object such as a fence. This form of auto insurance can help to pay for repairs or replace your car. It will cover you up to the cash value after deducting the deductible. Typically collision auto insurance is optional. Although, it can be required if you have a loan on your vehicle.

MEDICAL PAYMENTS COVERAGE

Medical payments coverage can help to protect you, your passengers, or family members that may be driving the insured vehicle and are involved in an accident. Medical payments coverage can help to cover the costs of injuries that may come about. Some of the costs that may be covered can include surgery, hospital visits, x-rays, and much more. Medical payments coverage can be a state requirement depending on where you live. 

PERSONAL INJURY PROTECTION

Often referred to as PIP, personal injury protection is usually only available in some states. Much like medical payments coverage, a PIP can help to cover medical expenses if you’re involved in an accident. Personal injury protection can also cover expenses you may encounter due to the injuries that resulted from the accident. This can include things such as child care and lost income to name a couple. If personal injury protection is required in some states and optional in others. It’s best to speak to a local agent to see what your state laws are.

OTHER TYPES OF AUTO INSURANCE COVERAGE

Rental reimbursement coverage

Gap coverage

New car replacement coverage

Towing & labor cost coverage

Ride sharing coverage

Sound system coverage

Classic car insurance coverage

If you have additional questions regarding auto insurance or would like to get a free quote to see what you qualify for, please give us a call at 916 313 6100