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. Don’t believe us, give us a call and put us to the test.
Maybe you just not ready to call to discuss which company is right for you. That’s fine, if you want to shop your auto insurance on your own, however, you need to get up to speed on some of the basic auto insurance coverage terms. You should also review our auto insurance frequently asked questions to further your understanding before you begin shopping.
Understanding auto insurance coverage is even more important if you’re going to compare auto insurance online, as not all the coverages are the same … even if the limits of liability or deductibles are. You could easily buy what appears to be the same coverage, with the same limits, but find out during a claim that the policy language had exclusions that prevented you from receiving your benefits. This is really where an insurance agent come in handy, as it’s our responsibility to know the nuances, and give you the fully breakdown before you buy.
Nonetheless, you want to get started, so let’s review the basics of auto insurance coverage. Your 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 California 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/under insured motorist bodily injury coverage was created. Uninsured/under insured 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.|
When you’re shopping for auto insurance, you need to make sure you understand what auto insurance coverage is available, and what protection it offers. This will help you make a better decision what you need when buying auto insurance.
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IronPoint Insurance Services is an independent insurance agency licensed (#0G87821) with the California Department of Insurance. We are authorized agents for many A+ rated Arizona, California and Utah insurance companies. We provide consumers with online, phone, and in-person insurance services through our insurance company relationships. IronPoint Insurance Services, LLC offers multiple insurance quotes to provide consumers several options for their insurance products. We offer auto insurance through Mercury Insurance Group, Travelers Insurance Companies, The Hartford, MetLife Auto & Home, and Progressive Drive Insurance. We are authorized insurance agents for these companies and do not charge any fees for our services. If an IronPoint insurance agent trys to charge you broker or agency service fees for representing these companies, please contact us immediately.