Understanding the Different Types of Auto Insurance Coverage
When it comes to auto insurance, one size definitely does not fit all. Just as your vehicle serves a unique purpose in your life, your auto insurance policy should be tailored to fit your needs and the specific risks you face as a driver. That's why it's important to understand the different types of auto insurance coverage available to you.
Liability Insurance
Liability insurance is required in most states and covers bodily injury and property damage that you cause to other people in an accident. It's usually expressed in three numbers representing (in thousands) your liability limits for bodily injury per person, bodily injury per accident, and property damage, respectively.
Collision Coverage
Collision coverage pays for the damage to your car resulting from a collision with another vehicle or an object, such as a tree or a telephone pole. This coverage comes into play regardless of who is at fault in the accident.
Comprehensive Coverage
Comprehensive coverage pays for damage to your car caused by events that are out of your control. This includes things like theft, vandalism, fire, natural disasters, and damage from animals.
Uninsured/Underinsured Motorist Coverage
Unfortunately, not all drivers on the road carry auto insurance, despite the legal requirement to do so. Uninsured motorist coverage protects you if you're in an accident with an at-fault driver who doesn't have auto insurance. Underinsured motorist coverage, on the other hand, protects you if the at-fault driver has auto insurance, but their liability limits aren't enough to cover your post-accident expenses.
Medical Payments Coverage/Personal Injury Protection
Medical payments coverage and personal injury protection (PIP) both pay for medical expenses for you and your passengers after an accident. They can cover things like hospital bills, surgery, and rehabilitation. The difference is that PIP also covers additional costs like lost wages and, in worst-case scenarios, funeral costs.
Gap Insurance
If you have an auto loan, you might owe more on your car than it's actually worth. In the event of a total loss, gap insurance can cover the difference between the value of your car and what you still owe on it.
Remember, it's important to tailor your auto insurance policy to fit your needs. Consider factors like the age and value of your car, how much you drive, where you live, and your financial situation. Your independent insurance agent can help you assess your risks and make sure you're properly protected.
Remember, understanding your coverage options is key to not only complying with the law but also ensuring you're adequately protected in case of an accident. After all, the purpose of insurance is to help you recover from unexpected events, and choosing the right auto insurance coverage is a big part of that process.
While this is a basic overview of auto insurance coverage types feel free to reach out to a team member at Wayne Lilly Insurance for a more detailed understanding and conversation.
