Auto insurance comes in a lot of different forms and can cover different things. Not being certain of what you have can lead to confusion and misunderstanding. The best way to avoid this is to understand what you have in the way of auto insurance coverage. It is possible that you do not have what you think you possess. Here is a brief explanation of what the typical auto insurance policy covers.
Collisions
When you have a wreck, your auto liability insurance policy may or may not pay for the repairs to your car, or it may even replace it if it is destroyed. Collision insurance is an optional insurance for your car, but a lender may require it if you still owe them money.
Collision insurance pays for damage to your car when it is damaged. This will usually include damage from a rollover, too. Generally, there is a deductible that you will have to pay first. The insurance company will pay the lender directly, and then any balance of money due will go directly to you. Most people do not carry collision insurance if their car is older.
Comprehensive
The comprehensive aspect of an auto insurance policy covers your car against damage from certain events. This does not include accidents, but will typically cover damage from floods, falling objects, fire, hail, theft, vandalism, and more.
Medical
Getting treated at a hospital is certainly very expensive today. Medical coverage, which is standard in an auto insurance policy, provides coverage for those who are riding in your car, as well as for those in a car (not your own) that you are driving. If need be, any funerals will also be taken care of by your insurer under this part of your policy.
Another aspect of medical coverage is that you will be covered as a pedestrian, too. If you or your family members are hit by a car while walking, this part of your auto liability insurance will cover you.
A similar part of your auto insurance is the Bodily Injury Liability. This covers you in the event you get sued for some kind of bodily injury that occurred while you were driving.
Damage to Property
Property damage is covered when you are driving. This refers to any property other than another car (unless it is parked), such as a fence, a tree, or even a house. Other people who may drive your vehicle with your permission are also covered. Some policies may prohibit other drivers from using your car. Be sure that you know about this before you let anyone else get behind the wheel of your car.
Uninsured Motorist
When you are involved in an accident with another driver who is not insured, you are covered. You also have coverage in the event of a hit and run. Knowing that not all states require this kind of coverage, having uninsured motorist coverage could really help you in an emergency if you need it.
Other aspects of a good car insurance policy may include towing, travel expenses to your destination if you are in an accident, need roadside service due to mechanical or electrical problems, and more. You are better off if you know exactly what provisions your auto insurance policy contains – and what it does not cover.
When you are ready to start comparing and shopping for online car insurance, start with compare car insurance now they allow you to find the lowest rates for the deductibles and coverage you want compared side by side.
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