Auto Insurance Coverage
If you're trying to better understand your auto insurance, you probably have a lot of questions that start with 'what is.." We can help you better understand your auto insurance coverage, give us a call and test us. If you want to learn this on your own, we have provided you a glossary of common terms. You can also review our FAQ's to further your understanding..
Auto Insurance has several coverages, all designed to protect you and your property.
What is liability coverage?
Liability coverage will compensate others for their losses if you're responsible for injuring another person or if you're responsible for damaging another person's vehicle or property. Liability coverage also helps you pay the costs of related lawsuits. Imagine if you had to pay for all this out of pocket!
What is Bodily Injury coverage?
Bodily injury coverage is part of your liability coverage. Bodily injury coverage helps you pay for an injured person's medical expenses and lost wages if you're at fault in a car accident. Bodily injury coverage can also help protect you in the event of a related lawsuit. If you don’t carry adequate coverage, you could be dealing with quite a few expenses.
What is Property Damage coverage?
Property damage is also part of your liability coverage, it helps you pay for damages to another person's property (such as a fence, car, or home) if you cause an accident. This form of auto insurance coverage can also help protect you in the event of a related lawsuit.
What is Collision coverage?
Unlike liability insurance, collision coverage is designed to help pay for damage to your own automobile. In your auto insurance policy, collision coverage helps pay for auto repair or replacement costs if your car rolls over or if your car hits another vehicle or object. Collision coverage is not mandatory in every state; however, if you were ever in an accident the out-of-pocket expenses would far exceed what you pay for collision coverage.
What is Comprehensive coverage?
Comprehensive coverage, also referred to as "other than collision," helps pay for damage resulting from falling objects, fire, certain natural disasters (check your individual state’s policies for details), and vandalism. Comprehensive coverage also generally covers theft. If you live in a metropolitan area, or an area that is prone to crime, you may want to consider this when you are purchasing your comprehensive coverage.
What is Medical Payments coverage?
Unfortunately, not all accidents are just small fender benders. Should you find yourself in a serious accident, medical payments coverage pays medical bills and/or funeral costs if a covered driver and/or accompanying passengers are injured or killed while in an insured vehicle. This type of auto insurance coverage applies regardless of who's at fault in an accident.
What is Uninsured or Underinsured Motorist coverage?
Driving without insurance is illegal. That doesn’t always stop motorists from doing so. That’s why uninsured/underinsured motorist bodily injury coverage was created. Uninsured/underinsured motorist bodily injury coverage pays for medical expenses, lost wages, and other general damages when policyholders, authorized drivers, or passengers are injured in an accident caused by a driver who has no auto insurance coverage or insufficient auto insurance coverage.
What is Collision Deductible Waiver coverage?
The collision deductible waiver pays your collision deductible if your insured car is involved in an accident in which an uninsured motorist is held legally responsible. If you have a high deductible this is especially helpful! You must purchase collision coverage in order to be offered collision deductible waiver.
