Do you know what your car insurance policy actually covers? What is insured and what is not? It’s important to understand the coverage types are available and what you’re paying for.
Here is a brief description of some of the major coverages and what they’re all about:
Property Damage Liability - This coverage type covers claims for property that your vehicle damages in a accident. This type of coverage is required in almost every US state.
Comprehensive - This coverage type covers physical damage done to your vehicle from fire, vandalism, theft, wind, flood, and other accidents not resulting from a car crash.
Collision - This coverage type covers physical damage done to your vehicle from a car accident.
Bodily Injury Liability - This coverage type covers medical and legal costs if your car injures or kills someone.
Uninsured Motorist Protection - This coverage types helps cover you if the person at fault in the accident is uninsured or under insured. This can also help pay for damage due to a hit-and-run.
These are the most basic types of coverage and most policies include all of them, but at different amounts. Make sure you go over your policy with a professional that can help you determine if you’ll be covered in an accident or disaster.