Auto insurance is certain vehicle insurance packages that various insurance companies sell. In exchange for a monthly premium, the insurance company covers certain events listed in the policy. In many states, standard auto insurance or liability insurance is mandatory, and you will need to get a policy before you can drive a vehicle legally.
Auto insurance generally includes property coverage, liability coverage, and medical coverage. Property coverage covers damages to the car due to covered events such as vandalism, certain natural disasters, or theft. Liability coverage covers the policyholder if they cause bodily injury or property damage with their vehicle. It covers the legal responsibility. Medical coverage covers medical treatments, funeral expenses, or rehabilitation.
In each state, there is a minimum amount of coverage you can purchase under auto insurance. An auto insurance policy typically comprises six types of coverage:
Bodily Injury Liability
Bodily injury coverage applies to damages the policyholder causes to another party. This coverage covers bodily injury damages even when driving other people’s vehicles. If you cause bodily injury to someone else during an accident or collision, there’s a high chance you may be sued for a large amount. Bodily injury liability helps to cover the costs.
Property Damage Liability
Property damage liability covers damages to properties caused by a policyholder while driving their vehicle or someone else’s vehicle with permission. It covers damages to another party’s vehicle and other structures such as fences, buildings, lampposts, telephone poles, etc.
This covers the damages due to theft or other events that are not a result of a collision with another vehicle. It covers damages from fire, theft, falling objects, explosions, etc. Comprehensive coverage typically covers events that occur when your vehicle is not being driven.
MedPay or Personal Injury Protection
This covers the treatment of injuries to the policyholder and the passengers in the vehicle following an accident. Personal injury protection may also cover lost wages, medical payments, and funeral costs after an auto accident.
This covers the damages to the policyholder’s vehicle after a collision with another vehicle. It reimburses the repair costs even if the policyholder is at fault.
Uninsured and Underinsured Motorist Coverage
Uninsured motorist coverage covers the damages if a policyholder is hit or injured by an uninsured or hit-and-run driver. It provides coverage if the at-fault driver does not have enough insurance to cover the policyholder’s loss.
For more information and help with various auto insurance policies, give us a call at Secure Insurance Group.