An Auto-Insurance is usually obtained to cover costs and damage-repair in case of unfortunate incidents like accidents, theft, natural calamities. But not all auto-insurances cover costs and repair-damage although that is the kind of insurance that is most prevalent. There are various types of coverage options for customers to choose from. This is to ensure that everyone can take an auto insurance coverage which they think is most apt for their needs and circumstances.
The following will brief you on the most common types of auto insurance coverage.
Liability Insurance
This is your basic insurance which insures your car and pays for the damage caused to you or by you. The law requires you to have a minimum amount of Insurance on your car. Here the “liability” means that the highest amount the insurance company will reimburse in case of an accident. If the amount is higher than the “liability” you will be sued for the remaining amount. The following aspects are covered under liability insurance.
- Bodily Injury Liability: All states have this auto-insurance as mandatory at some level. This Insurance covers all medical expenses, pain, loss, suffering and legal issues which occur in the event of you causing an accident. Hence choose a higher amount of “liability” that will be sufficient to protect you from going bankrupt.
- Property Damage Liability: This policy is also required by all states but the amount of coverage greatly varies from state to state. This Insurance covers your car and all other types of property including your home. They also cover legal cost issues. This Insurance will protect you from paying out of your pocket in case of you damage others property.
Physical Damage Coverage
This Insurance not only covers the damage that occurred to your vehicle in case of accidents but also under circumstances like vandalism, theft and natural calamities. Different insurance companies cover different categories, so make sure that you look for the most efficient one for you.
- Comprehensive Coverage: This Insurance covers you from non-accident related damages like theft, fire, vandalism, natural calamities and such. This Insurance is usually recommended for expensive or leased vehicles. There is usually a deductible involved, but you can choose the deductible amount you wish to pay.
- Collision Coverage: This Insurance covers accident related damages whether it is your fault or not. This is one of the most popular types of insurance. There is also a deductible involved here, which you can choose and the rest of the expenses will be taken care of by your Insurance Company.
Uninsured (UM) and Under-Insured(UIM) Coverage
This insurance will cover costs of accidents if you have been in a hit and run accident or when the other person does not have sufficient or even have an insurance policy. It will cover your medical expenses and also help regain lost wages. If you already have collision coverage, then this will cover your deductible amount and the collision coverage will pay for the rest.
