The Basic Elements of an Auto Insurance Policy
Liability Insurance – This coverage comes into play when you are considered at fault in an accident for the Bodily Injury and/or Property Damage to others. Most states require at least liability coverage. Coverage limits for Bodily Injury and Property Damage is state specific. It’s suggested to have higher limits than state minimum.
Medical Expense – During the course of an accident you may need additional Medical Expense coverage to pay for small hospital bills or deductibles. Medical Expense coverage is perfect for these situations and pays no matter who’s at fault. Coverage requirements are state specific.
Comprehensive – At times you may experience loss or damage to a vehicle not caused by a normal accident with another vehicle. Comprehensive Coverage can be used for losses due to hail, fire, theft, flood, vandal, and colliding with animals. The most popular use is for windshield coverage repair or replacement. Deductibles can start at $0 (full) and go up into the thousands.
Collision – This coverage is typical for normal accidents and rollovers and pays no matter who’s at fault. Collision Coverage deductibles can be as low as $0 (full) but usually start at $50 for most companies.
Additional Coverage Elements Of An Auto Insurance Policy
These endorsements can be added at an additional premium.
Uninsured Motorist Coverage – When an at-fault driver has no insurance or cannot be identified, Uninsured Motorist coverage pays out for the bodily injury or death of you or your family members in the vehicle.
Underinsured Motorist Coverage – When an at-fault driver does not have sufficient coverage for bodily injury damage caused, your Under-insured Motorist coverage will make up the difference up to your defined limits.
Uninsured Motorist Property Damage Coverage – When an at-fault driver has no insurance or cannot be identified, Uninsured Motorist Property Damage coverage will pay for the damage to your vehicle.
Towing or Emergency Road Service – This coverage will pay for the typical towing of your vehicle due to it being broken down or inoperable along side a public road. It can also extend to locksmith and mechanical labor.
Rental Car Reimbursement – If your vehicle is in the shop due to a covered claim, Rental Reimbursement will pay for a rental car up to a certain day and/or limit.
Accidental Death and/or Dismemberment – This coverage pays no matter who’s at fault in an accident when death or loss of body part is incurred.
Lease/Loan Gap Coverage – It’s possible your vehicle may worth less than what you owe at the time of a complete loss. Lease/Loan Gap coverage will make up the difference.