Auto Insurance Coverage – What is Right for me?
People who own and operate a vehicle need to be insured. But the types of coverage and how much depends on a few things. First though, what is auto insurance coverage, and what are various types that are typically found on a car insurance policy? Insurance coverages come in many different types but certain coverage is required.
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Losses of income and legal/medical bills add up to billions of dollars of losses in the auto industry every year. Being properly covered on your automobile can save you from serious loss that results from unfortunate accidents and damage to your vehicle. Not every state is going to require that you be fully insured. However, you will be required to prove you can cover damages should they prove to be your fault.
This page is designed to help you with understanding your auto insurance policy, and your car insurance coverage options that are available. Many Americans choose a simple liability package while others with families and newer vehicles select more of a comprehensive plan in case of serious accidents. Go through this page and read each coverage overview. There will be links from each definition to more comprehensive pages that offer more detailed information on each auto insurance coverage.
Types of Auto Insurance Coverage
Liability Coverage
Bodily Injury (BI) – Bodily injury auto insurance covers other peoples injuries or a resulted death that was your fault. There is also a legal aspect to this as well where it can cover legal expenses if the other party decides to file a suit against you. Claims typically are for medical bills, and future losses of income. If you get into a serious accident and it is determined to be your fault its imperative you are covered. This type of auto coverage does not cover your car it covers other peoples injuries, pain & sufferings, and loss of wages. If you own multiple cars its probably a good idea to get consistent coverage on all vehicles. See our full page on bodily injury liability insurance coverage to learn more on possible levels you that may be right for you and your family.
Property Damage Liability (PD) – If your vehicle damages someone else’s property this type of auto insurance covers you. Typically this is another drivers automobile, but it could be residential property as well if you crashed through a fence, wrecked their yard, and damaged the house. Attorney fees are expensive and this type of auto coverage provides defense. This is mandatory in most states. To learn more about property damage liability coverage read more and learn about the various levels of coverage you should buy.
Physical Damage Coverage
Comprehensive Coverage – If you are buying or leasing a new car comprehensive full coverage auto insurance could be required. This type of auto insurance covers your vehicle and other vehicles, but goes a step further and covers from damages to your automobile from things like floods, vandalism etc that are out of your control. Keep your monthly/yearly premiums lower by selecting higher car insurance deductibles. Pay as much out of pocket that you can afford to. See our full coverage auto insurance page for a comprehensive helpful information including auto quotes from national brand car insurance companies in your state.
Collision Coverage – This type covers when you are struck by or hit another vehicle. This is apart of your comprehensive coverage and also something to consider the types of levels you need to buy. Again like full coverage, select the highest out of pocket expense you can afford to keep your monthly payments low. If you have an older vehicle it may be wise to not select this type of auto insurance coverage. Your state will not require it but your car loan or leasing company may require you carry this coverage. Learn more by going to our Collision Coverage page on what is best for you.
Uninsured and Under Insured Motorist (UM)
Uninsured Motorists (UM) – This type of car insurance covers you when struck by someone who does not have sufficient coverage on their vehicle. If you are involved in an accident and its the other parties fault who does not have insurance then this part of your policy will cover you based on the medical amounts you selected. To learn more go to our Uninsured Motorists auto insurance coverage page.
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Under Insured Motorists Protection (UNDUM) – Uunderinsured motorist property damage covers you, members of your family who are on the policy, as well as any passengers in your car for damages and or death caused from someone who is not carrying sufficient car insurance coverage. If an accident happens and damages occur that cannot be met then your insurance policy will meet somewhere in between to cover you. To learn more see our underinsured motorist page.
PIP Coverage
Personal Injury Protection (PIP – MEDEX) – This type of auto insurance covers you for specific limits for medical, funeral (death), and hospital expenses for all insured persons. This type of car insurance is not available in every state. Therefore these amounts will vary depending on where you live and operate a vehicle. Learn more about your state laws on PIP coverage and if its smart to buy personal injury protection coverage.
Medical Payments
This covers you and the injuries to passengers in your car for medical expenses. This may also cover pedestrian types of accidents regardless to who is at fault and is often a smart addition to insurance depending on how heavily populated the are you driver your vehicle is. Make sure the read all the terms and conditions on this auto insurance coverage as it is limited to what’s in the policy. Learn more on our medical payments coverage page.
Work Loss
This is optional. For the economics for loss of wages this provides some coverage. This provides further protection for those listed on your car insurance policy. Pasengers in your vehicle will also be covered from any future loss of income for any accident relatd types of injuries. Learn more on our work loss coverage page.
Gap Insurance (GAP)
What is GAP insurance? This can also be refered to when car owners have a recent loan or lease they decide to payoff. In order to get this you must be fully covered including the collision option. You are further protected if your auto is at a total loss, which then reimburses you for the difference to what is owed to the leasing or loan company. If you are considering buying gap coverage your best bet may be to go through your insurance company rather than the auto dealer. Learn more about this topic on our GAP insurance coverage page.
Towing – Emergency Roadside Assistance Coverage
This type of auto insurance is typically available as part of your full coverage/collision policy. Check with your local agent as this coverage will vary from company to company as some only covers when actual claims have been made against you. Learn more about this topic on our Towing auto insurance coverage page.
Accidental Death Benefit (ADB)
This type of auto insurance pays a benefit if death occurs of you or a covered family member. Learn more about accidental death coverage and if is right for you and your family.
