What Does Auto Insurance Cover?

As a driver, you are responsible for your own safety as well as the safety of any passengers in your car, fellow drivers, pedestrians, and the property of others. Being responsible for so much can be stressful, but auto insurance is designed is designed to protect you and take the stress out of driving. Auto insurance guarantees that you will be able to cover the costs that result from an accident. However, what auto insurance covers depends on the type and amount of coverage that you secure when you compare policies.

Coverage Types

Liability coverage is an essential for drivers, and most states require drivers to purchase bodily injury liability coverage and property damage liability coverage. These two types of coverage are designed to protect you financially in the event that you cause an accident, as does collision coverage insurance. Without liability insurance, you would have to cover the costs of these damages and injuries yourself. Expenses that result from an accident can be high, and having to pay such an amount out of your own pocket could cause financial ruin.

Bodily injury liability coverage is designed to cover expenses associated with injuries you cause to another party in an automobile accident. It will protect you against any claims that the injured party or parties claim against you, including medical bills, lost wages, and pain and suffering. This coverage can even be used to pay for legal fees that may result from the accident. Property damage liability coverage will provide compensation for damage done to another driver’s property. Property is not just limited to the driver’s vehicle. It can also include the person’s home, fence, yard, and a variety of other objects. Together, bodily injury liability and property damage liability coverage ensure that you will be protected in the event of an accident. The coverage levels you choose will help to determine just how protected you are.

You can add optional coverage that will protect you, your passengers, and your vehicle in the event of an accident or other incident. If you choose to add comprehensive and collision coverage to your auto insurance policy, you will be protecting your investment by ensuring that your vehicle will get repaired in the event of an accident or by acts of vandalism or theft. Comprehensive coverage will pay for damages caused to your vehicle by something other than a collision. This type of insurance covers damage caused by natural disasters, animal attacks, theft, and vandalism. Collision coverage, on the other hand, provides you with compensation for damages to your vehicle no matter who is at fault for the accident. By securing both of these types of insurance coverage, you can ensure that your automobile will be protected both on and off the road.

Underinsured/uninsured motorist coverage can provide you with protection against drivers who have little or no insurance coverage. If you are involved with one of these drivers, and do not have the coverage, you could end up having to pay for costs associated with the accident out of your own pocket. Underinsured/uninsured motorist coverage will pay for medical expenses for you and your passengers, and, in some states, will help pay for damage to your vehicle.

Your Protection

Auto insurance coverage serves many functions, depending on what policy you choose. You have the option to protect your investment in your vehicle, protect yourself against financial ruin, pay for medical expenses associated with the accident, provide you with compensation for damages caused by drivers with little or no insurance, and cover damage caused by things other than collisions. A comprehensive auto insurance policy will provide you with all of this protection.