Auto Insurance: What's Covered and What's Not

By: Sukhdeep Singh | Views: 880 | Date: 04-Aug-2011

What your insurance company covers is highly dependent on the kind of policy that you get from them. So, supposing that you just signed up for the most basic insurance policy, do you know what you’re getting?

When onesigns up for auto insurance, many people mistakenly believe that in the event of anaccident, the insurance company will take care of everything, and when we sayeverything, we mean absolutely everything. We’re sad to burst your bubble, butthat’s really not the case. What your insurance company covers is highlydependent on the kind of policy that you get from them. So, supposing that youjust signed up for the most basic insurance policy, do you know what you’regetting? Here’s the most basic list!

 

1        Body Injury Liability- this applies to injuries that the designated driver may cause on toanother driver. The good thing about this is that yourself, as well as yourfamily members, can take advantage of this benefit, in the event that thefamily member drove your car with your permission. Body liability is importantbecause when you injure another person in an accident, he or she may sue youfor huge sums of money. You may even consider buying more in order to protectyour savings or your home in the long run.

2        Medical Payments or Personal Injury Protection- If you or otherfamily members inside the car at the time of the accident sustain injuries,this coverage can take care of your medical bills. In fact, personal injuryprotection can cover lost wages, cost of replacing services, and even funeralexpenses, in the event of a fatality.

3        Property Damage Liability- In case you damage somebody else’sproperty because of a driving accident, then this can cover the expenses thatwill cost to repair it. This isn’t exclusive to damage another person’s car,but also things like fences, lamp posts, buildings, homes, or other structuresthat your vehicle may have hit.

4        Collision- In case your car is damaged because of a collisionwith another car, object or it flips over, then collision will take care of it.Damage caused by potholes is also covered. Collision coverage generally is soldwith about $250 to $1000 deductible. The higher one’s deductible rate is, thelower the premium. The nice thing about collision coverage is that even if youare found at fault for the car accident, the collision coverage will stillshoulder your car repair costs.

5        Comprehensive- this covers you if your car is stolen or there isdamage to it that is not caused by a car accident or another car. Examples areexplosions, fire, flood, hail, vandalism or animals.

6        Uninsured and Underinsured Motorist Coverage-  In the unfortunate event that you or a memberof your family is injured by a hit and run accident, or the other driver willnot have enough insurance coverage or money that will cover the expenses, thenthis will take care of it.

This is what youcan more or less expect from a very basic insurance policy. Of course, theremay be additions and omissions, so be sure to ask you insurance provider aboutthe details.

 

Sam Briones is a writer who covers an array of topics from finding cheap auto insurance to safety tips.

 

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