An auto insurance policy includes different terms of coverages. Your insurance agent will guide you about your insurance policy which fits best with your financial and individual needs. It’s an important part at the time of insurance policy selection that you should be well know with your insurance policy limitations and laws under policy.
Liability coverage is considered as a legal requirement to drive a car. Liability insurance may help cover damages for injuries and property damage to others for which you become legally responsible resulting from a covered accident. Liability auto insurance is actually the combination of two types of coverage: Bodily Injury (BI) and Property Damage (PD).Liability coverage is to ensure that drivers that end up hurting others or damaging property can property compensate the other party. In order to drive in most states, motorists must have some form of liability coverage or demonstrate another form of financial responsibility. Here are some auto car insurance policy coverages below :
Liability Coverage for Bodily Injury : Liability insurance may help cover damages for injuries and property damage to others for which you become legally responsible resulting from a covered accident. In order to drive in most states, motorists must have some form of liability coverage or demonstrate another form of financial responsibility. Liability coverage is to ensure that drivers that end up hurting others or damaging property can property compensate the other party. i.e if you have a million-dollar house, you could lose it in a lawsuit if your insurance coverage is insufficient. The greater the value of your assets, the more you stand to lose, so you need to buy liability insurance appropriate to the value of your assets.
Liability Coverage for Property Damage : helps pay for damage you cause to another person’s property in a car accident. Property damage liability coverage helps pay for damage you cause to another driver’s vehicle. Property damage liability pays to repair or replace their cars or other damaged property.
There are exceptions to every rule, and this goes for your liability coverage as well. For example, if you cause damage to another person or their property intentionally, your liability insurance will not cover the damage. Most commonly, your property damage will pay out when you are at fault for an accident that causes damage to someone else’s car. You may want to consider other coverages, such as collision coverage, to help cover the cost to repair your own vehicle.
Collision Coverage : Covers the cost of damage to your own car in an accident. Remember, collision coverage helps protect your vehicle, while property damage liability helps pay for damage you cause to another driver’s vehicle. Collision coverage is important to have if a car is new and valuable, but less important as the value of the vehicle declines.
- Collision insurance coverage pays out if your car crashes into an object or another car or if it flips over.
- Collision insurance is not generally required by state law.
Comprehensive Coverage : helps pay to repair or replace your vehicle if it’s stolen or damaged by things like hail, animal damage or vandalism. Comprehensive insurance pays out if your car is stolen, or damaged by anything other than car accidents. If the car is leased or financed, the leasing company or lender may require you to have Physical Damage coverage. Comprehensive coverage includes damage from storms, falling objects, floods, earthquakes, explosions etc.
Medical Expenses Coverage : Covers the cost of medical care for you and your passengers in the event of an accident. For your own medical costs, you might consider medical payments coverage or personal injury protection (PIP), which may be available as part of your car insurance policy. Medical expenses coverage may include things like surgery or X-rays.
Uninsured or Underinsured Motorist Coverage : Uninsured motorist insurance can protect you and your car against uninsured drivers and hit-and-run accidents.This coverage is often paired with underinsured motorist insurance. Underinsured motorist insurance can protect you in the event of an accident with a driver whose insurance is not enough to cover the costs. If you’re injured in an accident caused by another driver, that driver’s liability insurance will usually help cover medical expenses.
Uninsured coverage also pays out if the other driver doesn’t have enough liability insurance to pay all your medical expenses.
Personal Injury Protection : Personal injury protection will pay for the medical expenses of you or anyone else covered by your policy usually known as PIP or no-fault car insurance. It may cover certain medical expenses and loss of income resulting from a covered accident.