Auto Insurance Coverage Information
Liability is the coverage needed to legally drive in the United States. Liability coverage protects you against the damages you cause to others. It is mandatory in almost every state. Liability coverage pays for bodily injury and property damages resulting from an accident you caused. This should be set at an amount that will protect you from having to pay out of pocket if those damages exceed your insurance limit. Liability is also an important coverage to consider when protecting your assets such as a home or retirement account. This is because if you are found at fault in an auto accident, you may be sued for large sums of money. If the court finds you at fault and you do not have enough liability insurance, you will pay out of pocket for every dollar over your coverage limit. This makes liability a very important aspect of auto insurance and one to consider wisely.
Automotive Liability Insurance can help protect your assets
If you're at fault in an accident, you could be held legally responsible for injury or damage caused by the accident.
The National Association of Insurance Commissioners breaks liability into three parts: bodily injury, property damage and uninsured motorist coverage. Bodily injury liability coverage pays for bodily harm you cause others in an accident at which you are considered at fault. It does not pay for damage to your car or injuries in your car. Property damage liability covers damage to the property of others, including other vehicles, buildings, fences or trees. Uninsured motorist coverage protects injury to you or your passengers in the event that you are injured by a hit-and-run or uninsured driver. Some states have no fault laws, which mean that your auto insurance policy covers you in an accident regardless of fault.
All drivers are required by law to have both of these liability coverage’s
Bodily Injury Liability and Property Damage Liability
Auto insurance is frequently misunderstood by the consumers, but it is easier to understand than you may think. Minimum Coverage is a term often heard and used to describe the coverage necessary to drive legally and comprehensive coverage is usually used to describe the coverage of your auto and passengers. There is still more to auto insurance features and terms than those two basic terms.
It’s important in starting with coverage limits which are important to determining the cost of purchasing auto insurance. If you only want the bare minimum state requirement for bodily injury liability, your quote will likely be far lower than if you were to opt for the maximum allowable amount. If you're not sure how much insurance you need, review your state's requirements.
Collision coverage pays to fix physical damage to your car caused by a collision. This coverage is costly and if you have an older vehicle and don't owe any money on it, spending too much on this coverage might be ill advised or the vehicle is not worth a substantial amount of money, you may want to skip this coverage. If you have a loan on your vehicle this coverage is mandatory. It is important to note that this coverage covers your vehicle regardless of fault. If another driver cause’s damage to your car, his property damage liability will cover your vehicle. If you have collision coverage, you can hand the case over to your insurance company and it will handle the details and deal with the other driver's insurance company. This is an added benefit of collision coverage. Collision insurance covers damages to your car caused by a crash into a car or other object.
Comprehensive coverage covers theft, vandalism, malicious mischief, fire and some other specific coverage’s that are not caused by a collision. This coverage generally has a lower deductible, which means you pay less in the event of a loss. Fire damage is covered by comprehensive insurance. Comprehensive insurance covers other mishaps that damage your vehicle, such as hail damage. Bottom line is that comprehensive coverage pays for any losses that don't come as a result of a collision, like a fire, theft or vandalism.
Uninsured motorist insurance Uninsured and underinsured motorist coverage protects you if you're hit by a driver with no insurance or inadequate coverage. Find out why skipping this insurance may be a mistake. Uninsured motorists insurance isn't always mandatory, but it could come in handy if you cross paths with the one in seven uninsured drivers that the Insurance Research Council says are on the road today. This type of insurance usually pays for damage caused by the uninsured driver.
Other types of Coverage’s
Car insurance companies offer many other types of additional coverage.
Medical payments coverage - Pays for medical expenses incurred by you or your passengers, regardless of who's at fault in an accident. If you already have good health insurance coverage, you may only need a minimal level of coverage. But if you're not enrolled in an existing health benefits plan, you may want to select higher medical payment coverage limits.
Other coverage’s include rental coverage, medical payments, towing or roadside assistance. Rental coverage provides a rental car in the event of an accident. This coverage varies by company so be sure to talk to your insurance agent about the details. Roadside assistance pays for towing your vehicle from the event of an accident, and sometimes covers assistance, such as flat tire repair or lock-out. Medical payments coverage covers passengers in your vehicle for funeral expenses or hospital bills for injury or death, which occurs while a passenger in your car.
Do you need these optional coverage types?
How much coverage do you need?
You should know your deductible amount and that you know the amount that you will liable for in the event of damage! They are typically between $250.00 and $1,000.00.
You should know how much insurance you need ahead of time!
See what Coverage’s are right for you!