If you drive a car, you need auto insurance, but with so many different policies from which to choose, it can be confusing to understand what your policy covers. While every policy is unique, most have similar guidelines. If you would like to learn more about auto insurance plans, keep reading.
Liability Insurance
In most states, you are required to have liability insurance to legally drive, and it should cover bodily injury and personal damage for other drivers. If you are found to be responsible for an auto accident, liability insurance kicks in to pay for the other driver's medical bills and vehicle repairs. Liability insurance does not cover the cost of medical bills or damages you incurred during the accident.
Collision Coverage
Collision coverage is not usually required by law, but if you are still paying your car loan, you may be required by the lender to have collision coverage. Like liability insurance, this type of coverage pays for damages if you are responsible for the accident, but it does not cover medical expenses.
Unlike liability insurance, however, it also covered damages your vehicle incurred during the accident, even if you caused it. Since it also covers you, single-car accidents and collisions with objects are also covered. Damage that isn't related to driving is not covered.
Comprehensive Coverage
Comprehensive coverage is a robust way to protect your car because it covers a wide variety of perils, such as theft, vandalism, fire, falling trees, storms, rocks, and accidents with animals. Alone, it does not cover collisions, regardless of who is at fault.
This coverage also only covers damage to the vehicle. Therefore, if you were in the car at the time of the covered event and sustained an injury, your medical bills won't be covered. Getting comprehensive coverage, collision coverage, and liability insurance is considered "full coverage."
Medical Payments Coverage
Medical payments coverage is a type of insurance that helps pays for medical bills for you and your passengers after an auto accident, even if you caused the accident. It helps pay for many medical procedures, such as X-rays, surgery, doctor or hospital visits, health insurance deductibles and co-pays, ER trips, and much more.
Medical payments coverage does not pay for any lost wages if you were unable to work because of the accident. If you want coverage that includes lost wages, personal injury protection (PIP) insurance may be the better choice.
The type of auto insurance you need depends on many factors, including the law. However, with the right coverage, you no longer have to worry about the financial effects of a totaled car. If you would like to learn more, contact an auto insurance provider in your area today.
Share
