A newbie driver, more likely to be teens or college students can be very excited to drive out their new car at first. Even though they do have auto insurance and they think they are properly protected, once an accident occurs or their car gets damaged, they get surprised about how little the coverage will be for their car. Proper knowledge of auto insurance coverage can save you, if you are one of those beginner drivers or auto insurance clients, from big payments and help you get more properly protected. Just know what kinds of coverage you should get your car.
What kind of coverage do I get from my auto insurance company?
There is the basic Liability coverage that you are required to get for your car. The law requires this so it is called a basic type of coverage. This type of coverage covers all liabilities that will and can be caused by car accidents. It can be further explained into two more types: the Property Damage Liability and the Bodily Injury Liability.
What do these two types of coverage do?
Property Damage Liability coverage covers the expenses caused by the damage of vehicles involved in the accident. This also covers the repair of other peoples’ properties that are damaged in the accident. This means that the properties that are covered here are other people’s, not yours.
Bodily Injury Liability on the other hand covers the expenses for medical treatment of other people injured in the accident. It can also help you save your assets by paying for the medical bills directly. Also, this type of basic coverage pays for the legal costs if you are sued by other parties because of the accident.
Are there other coverage types that I should know of?
There are actually almost countless types of coverage that companies can offer you. And the basic types of coverage pays for the damage you incur the other people in the accident. It doesn’t translate to having your losses covered. Here are some of the more popular choices of other coverage types that can have you fully covered:
- Comprehensive coverage pays for other incidents that cause damages to your car. Calamities, theft, fire and others will be covered by this type.
- Collision coverage on the other hand, covers only damages from auto accidents.
- Personal Injury Protection or Medical Payments coverage covers your medical expenses. It also includes your passengers medical and/or even funeral costs. This can also cover those others listed in your policy even if they meet an accident as a pedestrian or using another car.
- Underinsured/Uninsured Motorist coverage gives you protection from drivers who have little or even no insurance protection.
These are the basic and more common types of coverage that you should know about. But there are still other more choices to choose from to make sure you are fully covered when you need it. Being a driver, even a student or not, you should know these things to better understand the benefits of being well prepared in times of accidents.