Auto Insurance
This insurance covers loss or damage to any kind of motorized vehicle resulting from theft, other risks of loss, slips and falls, burns, and other bad acts. It is also possible to add third party liability, earthquake, flood, and riot risk coverage to this policy.
What your auto insurance covers:
Liability Coverage
In most states, auto liability coverage is required. It is strictly necessary for drivers to obtain the bare minimum liability coverage stipulated by state law. Liability coverage consists of two parts:
- If you cause an accident, bodily injury responsibility may assist with covering expenses associated with the injuries of another individual.
- If you cause damage to someone else's property while driving, property damage liability might be able to help cover the costs.
Collision Coverage
Collision coverage may assist with the cost of repairing or replacing your automobile if you collide with another vehicle or strike an object like a fence (up to its real monetary value and minus your deductible).
Usually, collision coverage is an option. However, your vehicle's leaseholder or lender can demand it.
Comprehensive Coverage
Comprehensive insurance may help pay for harm caused to your vehicle by vandalism, fire, theft, or hail. Comprehensive coverage may assist with covering the cost of replacing or repairing your car in the event that it is damaged by a covered risk (up to the vehicle's real cash value). The amount you must pay out-of-pocket for a covered claim before your insurer reimburses you is known as the deductible for this plan.
Although comprehensive insurance is normally optional, if you're leasing or financing a car, your lender can insist on it.
Medical Payment
Medical payments coverage may assist in covering some of the costs of injuries sustained in an accident involving you, your passengers, or family members operating the covered car. X-rays, surgery, hospital visits, and other expenses can all be covered.
In certain states, medical payments coverage is mandated, while in others, it is voluntary.
Personal Injury Protection
PIP, or personal injury protection, is limited to certain states. PIP may assist in covering your post-accident medical costs, much like medical payments coverage. Furthermore, PIP could assist in paying for additional costs you have incurred as a result of your injury, like lost wages or child care costs.
In jurisdictions where it is offered, personal injury protection is optional; in other states, it is mandatory.
Other types of auto insurance coverage
Depending on your circumstances, you might be able to add the following optional coverages to your auto insurance policy. To help you create the ideal policy, your insurance agent can explain to you what each helps cover.
- Resources, coverage for rental reimbursement, and coverage for travel expenses.
- Gap coverages.
- Sound system coverage.
- New car replacement coverage.
- Ride-sharing coverage.
- Classic car insurance.
- Towing and labor cost coverage.
