There are six types of auto insurance policies that you can purchase, all with its own individual price to protect you in a specific area. This post will discuss all of the types of coverage so that you can easily select an auto insurance policy that matches your needs.
A Look At A Basic Auto Insurance Policy
Bodily injury liability covers the injuries that you or any other policyholders cause to someone else while driving. It also protects you in the event that you are driving someone else’s car when you get in the accident, as long as you have permission to drive from the owner of the vehicle. Purchasing a policy with a high bodily injury liability amount will protect your personal assets in the event that you cause some costly damage. Gordon & Doner suggest that at a minimum you’ll want to have this coverage.
Personal Injury Protection protects you and the other passengers in your vehicle when you get in an accident. It can cover lost wages, medical expenses, and even funeral costs.
Property Damage Liability covers you in the event that you do damage to someone else’s property. It protects you when you do damage to other peoples structures include vehicles, fences, and buildings.
Collision coverage pays for damage to your vehicle so that it can be replaced or repaired. It doesn’t matter whether you are at fault or not for the accident, as you’ll be paid either way after the deductible is removed from the cost of repairing your car. When you aren’t at fault for an accident, the insurance company will try to take money from the other driver’s insurance company and if successful, the deductible will be reimbursed to you.
Comprehensive coverage takes care of the cost of replacing your vehicle if it is damaged in anything other than a collision. This includes damage done because of theft, natural disaster, vandalism, or contact with animals. Comprehensive coverage also takes care of your windshield replacements if the glass is cracked or shattered.
Uninsured Motorist Coverage protects you in the event that the damage done to your vehicle caused by another driver exceeds the value of the at fault driver’s insurance policy. In the event that you are victim of a hit-and-run, you’ll also be reimbursed for the replacement price or damage done to your vehicle.