Do you know what is included in your car insurance policy? Auto insurance is required in 47 states, but the basic elements included incar insurance policies can vary from one state to the next. There are six different types of coverages that may compose your auto insurance policy:
Bodily Injury Liability: This coverage is for injuries that the policyholder causes to someone else. It also covers you and others listed on your policy when you're driving someone else's car with their permission.
Medical / Personal Injury Protection: This covers treatment of injuries to the driver and any passengers in the policyholder's vehicle. PIP coverage may include medical payments, lost wages, and the replacement of services typically performed by someone injured in a car accident. In some cases, it may also cover funeral costs.
Property Damage Liability: This type of automobile insurance coverage is for damage caused by you or someone else driving your car (with your permission) to someone else's property. Typically, that property is another car, but property damage liability may also cover street lights, fences, buildings, and other structures as well.
Collision: Collision covers damage to your car caused by a collision with another vehicle, object, or flipping over. It also covers damage caused by potholes. Collision is typically sold with a deductible of between $250 and $1000—the higher your deductible, the lower your car insurance premium. Contact your insurance representative for more details.
Comprehensive: Comprehensive coverage is for losses due to theft or damage caused by something other than a collision. Covered risks include fire, falling objects, missiles, explosion, natural disasters, vandalism, riot, or hitting animals such as birds or deer. This type of car insurance coverage is usually sold with a deductible of between $100 and $300, and the higher your deductible, the lower your premium. Comprehensive coverage may also include glass coverage for damage to your windshield. Some automobile insurance companies offer glass coverage without a deductible. Contact your local representative for more info.
Uninsured/Underinsured Motorist Coverage: This covers you in case you sustain damage or injury caused by an uninsured driver or a hit-and-run. Underinsured motorist coverage is for when the at-fault driver's car insurance is not sufficient to pay for your total loss. This type of automobile insurance will also cover you if you are struck as a pedestrian.
Your auto insurance policy may include any combination of these elements. Most states require drivers to carry minimum amount of liability insurance for bodily injury and property damage, as well as personal injury protection coverage. Don't wait until you're in an accident to find out what sort of coverage is included in your car insurance policy—contact your insurance representative to review the details of your auto policy today!