For first time auto insurance applicants, they might have the impression that car accident insurance come in one form and one goal, to cover the cost whenever a car accident occurs. But surely enough, getting a car insurance policy is not that easy. It is in fact a detailed process. We cannot just say that “hey, I was involved in a car crash. Come and cover my bills.” It’s not that simple. Auto insurance companies will let you choose what items to be included in your policy for them to be able to calculate your auto insurance rate. Now, there are several different items that can make up your auto insurance policy and it is important for you to now them. Getting familiar with this information will help you evaluate which ones you need the most.
Liability Items
First, there is what we call the Property Damage Liability Coverage. This item covers the cost whenever you are at fault in a car crash and it involves other people’s property such as their vehicle, their fences, and their mailboxes perhaps. This can also protect you if the property owners decide to file lawsuit on what happened.
Second, there is what we call the Bodily Injury Liability Coverage. This item covers the cost when other people are injured or died because of an accident with you at fault. This will take care of their medical bills, their loss of income if the end result is them being disabled as well as lawsuits that are filed against you. This is clear though that it can only cover other people – not you, not the vehicles, but them, the injured.
Physical Damage Items
Physical damage items are commonly used because they cover damages on your vehicle for whatever causes. It can cover the cost of repair for minor damages and even the present value of the car if it is totaled. If you were in a collision with another vehicle, the auto insurance coverage that would take care of that would be called collision coverage. This will cover the cost of repair when your car hits another car or an inanimate object. If damage was caused by other than collision, then it would be covered by comprehensive coverage. Comprehensive coverage takes care of the cost of repair when damage is done to your car by natural phenomenon like flood, snow, hail, tornado, hurricane, landslide, mudslide or any other natural forces that can inflict serious harm to the vehicle. It will also cover your car if it was caught in a fire, if it was stolen and if there was an instance of animal-vehicle collision.
There are other types of coverage that you can include in your car accident insurance. You can consult your trusty auto insurance for others and think of what is the most appropriate items for you.
