Auto Insurance Coverage Beyond Vehicle Damage


Auto insurance coverage is not just about having sufficient coverage for your vehicle but also for you as the driver or your family. It is true that the damages to a vehicle during a collision can often be very expensive. Vehicle damages could happen due to accidents or collisions with immovable objects like trees or walls. Damage could also be incurred due to cyclones, hail storm, earthquakes and floods. Apart from this theft is a very common problem for vehicle owners.

Auto insurance provides coverage for all of these. The damage costs are entirely borne by the insurance company apart from the deductible which you will have to pay. In cases, where the fault is completely the other driver’s your insurance company might even get the other driver’s insurance company to cough up all the damage repair costs in which scenario, you do not even have to worry about the deductible. However, these are all cases where there are damages to the vehicle itself. However, one needs to take insurance for bodily damage which is quite possible in case of accidents.

Personal injury protection and medical payments is one of the insurance that companies provide for vehicle owners. Personal injury protection has a very broad scope. Firstly, you are paid for all the medical expenses incurred due to injuries sustained in accidents. Secondly, all the medical expenses of any injuries sustained by friends and family members travelling in your vehicle are also borne by the insurance company.

Another significant feature of this PIP insurance is that even if you are travelling in somebody else’s car and meet with an accident, all the medical expenses are borne by the insurance company. So a policy holder doesn’t have to worry about the financial damage due to accidents to his or her passengers. Another important coverage provided by this insurance is the cost of replacement of services offered by the injured policy holder. This means if the policy holder sustains injuries as a result of which he or she loses pay, the insurance reimburses the policy holder for the same. In extreme cases, this insurance also covers for the funeral costs.

Bodily injury liability insurance is something that is mandated by law. In this case, the insurance is required to pay the damage cost to anyone who has suffered due to an accident that you are responsible for. One is encouraged to keep a high coverage for this as the liability charges could go up quite high in some cases.

The policyholder might need to pay for the medical expenses, injuries sustained and loss of pay because of that and for the pain too. In some cases, if the vehicle of the other party is being driven by family members with their permission, their medical expenses are to be borne too. Hence liability insurance is in a way to protect the interests of the counterparty in case you cause an accident. This is compulsory and it is advisable to have a higher sum to ensure you can protect your financial assets like house or vehicle which you could lose if you are unable to pay for the liabilities in some scenarios. You can also go for towing and labor insurance which will cover for the cost of towing your damaged vehicle to the service station.