It is always best to know the type of coverage that your auto insurance provides. This way, you can determine if your existing policy can provide adequate protection against certain liabilities and damage claims.
When you buy car insurance, you are actually purchasing a single policy that can cover a specific type of vehicle. However, the final cost of your auto insurance policy rests heavily on the coverage types included in it.
First, there is a cover for body injury liability. This type of coverage can protect you against injury or death claims as well as legal costs if ever your car accidentally killed, maimed or injured someone.
Another type of cover is property damage liability. This type of car insurance coverage can shoulder the cost of damage claims due to the destruction of property caused by your vehicle.
Technically, liability coverage is intended to pay damage claims of the other party. However, if you have insurance, your personal finance will not be affected by the claims of the other party. In almost all states, liability coverage is mandatory.
The third type of car insurance coverage provides medical benefits for you. This is typically known as medical payments coverage. It is specifically intended to pay for medical bills and hospitalization expenses if you suffer bodily injury during a car crash or accident.
Another type of self-protection is the Uninsured Motorist Protection. In the United States, more than 30 percent of vehicles do not have insurance or have inadequate insurance. Your Uninsured Motorist Protection can pay for the damages caused by an uninsured vehicle.
Lastly, there is the Comprehensive Car Insurance. This type of policy can cover both liability and self-protection for bodily injuries and property damages. This is quite expensive but can be very useful especially if you regularly traverse high risk roads and highways.
Read more about car insurance.
