Auto Insurance: What’s In The Policy

Trying to buy auto insurance can be a hassle if you don’t know what you’re looking for. There are a few different types of auto insurance that few people are familiar with. However, Knowing the difference between the coverages can save you time. Here are the different coverages and what could be in your auto insurance policy.

Liability Coverage

This is the coverage needed within most of the US if you’re driving a car. Liability coverage can help cover the damages from a car accident. There are two types of coverage included in liability coverage. This is Bodily Injury coverage and Property Damage coverage. Bodily Injury coverage will help cover the cost of a person’s injuries if caused by an accident. Property Damage coverage helps pay the cost of damages to a person’s property.

Uninsured/Underinsured Motorist Coverage

These two coverages are often paired together. Uninsured Motorist coverage protects you from drivers that have no insurance. It also protects you from a hit-and-run. Underinsured motorist coverage protects you from drivers with little insurance. This means they have insurance but it is very limited. In some states, it is the law to have these, while in others it is optional.

Comprehensive Coverage

Comprehensive coverage is like an extra layer of coverage for your vehicle. It can help pay for damage outside of your standard car accident. This includes theft, some inclement weather, vandalism, fire and more. Comprehensive coverage also has a deductible. This is what you will pay out of pocket before the insurer can reimburse you. This is optional coverage but your lender may need you to have it.

Collision Coverage

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This coverage can help pay to replace or repair your car if involved in an accident. This not only includes another vehicle but also if you hit an object like a pole. Collision coverage is also optional but your lender may need you to have it.

Medical Payments Coverage

Auto insurance policies can sometimes include medical payment coverage. Medical costs are expensive, especially after an accident where someone got injured. Having this insurance can help cover these costs. Some states need you to have medical payments coverage, while others do not.

Personal Injury Protection

Personal injury protection can cover some medical expenses. This also includes the loss of income and even child care from a covered accident. The limits on the coverage can range from covering most expenses to the least amount. In some states, it is the law to have this, while in others it is optional.

Auto insurance can include many different coverages depending on your situation. It is always best to know what you need to figure out the best policy for you. Here at Insurance Navy we have many options to help you if you need them. Visit us here to find out all the ways auto insurance can keep you covered.