Car insurance is a necessary obligation for all vehicle owners. However, have you ever wondered about the extent of coverage offered by your policy? It's important to know the extent of your coverage in advance so that you can avoid nasty surprises if you get into an accident or commit a traffic violation. This blog will dive deep into understanding what your auto insurance truly covers.
Comprehensive coverage is often included in auto insurance policies, and it covers a wide range of causes of damage to your vehicle that may have occurred outside of an accident, including theft, fire, vandalism, and even natural disasters such as floods, hurricanes, or hailstorms.
Liability coverage is a requirement in almost every state, providing protection for damages that may arise from accidents involving other drivers or their vehicles. This coverage also extends to injuries that may occur to other drivers or passengers due to your negligence. It's essential to have substantial liability coverage in case you cause a severe accident because the damages can become too high to cover out of pocket.
Personal Injury Protection:
Personal injury protection (PIP) ensures coverage for all passengers in your car, regardless of fault in the accident, by shouldering their medical expenses. Coverage also extends to pedestrian injuries in some cases. It can cover anything from medical bills and lost wages to rehabilitation and home assistance services.
Collision coverage is optional but highly recommended. It covers the damage that occurs to your vehicle if you accidentally collide with any object, including another car or a stationary object. This coverage usually comes with a deductible, which is the amount you pay before your coverage kicks in. You can adjust your deductible to lower or raise your insurance premiums.
Uninsured/Underinsured Motorist Coverage:
This is optional but provides protection in situations where you're involved in an accident with an uninsured or underinsured driver. It ensures that you're financially covered for all the damages and injuries sustained. In this scenario, you may have to cover the remaining portion out of pocket. This coverage also extends to hit-and-run accidents.
It's important to understand what your auto insurance covers and choose the best policy for your specific needs. Consider the damages you want to protect yourself against, your budget, and the state-mandated requirements before you choose. Remember that your coverage can save you from severe financial consequences in case of an accident.
Contact an auto insurance agent to learn more.