What's Covered Under Your Auto Insurance?

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Navigating the World of Insurance

The world of insurance is changing. While you used to have to meet up with an insurance agent in person to discuss your policy options, you can now begin a new insurance policy right online. When I first signed up for an auto insurance policy, I realized that signing up right online led to confusion when I didn't have an agent with me to discuss which policy was best for me. Thankfully, I realized I could chat with an agent right on the website. I then began researching insurance and learned a lot about many types of insurance during the process. I find the ever-changing world of insurance so interesting that I continue to research it and thought that I would help others by posting what I learn on a blog. I hope I can help you make good insurance policy decisions! Check back often for new posts!


What's Covered Under Your Auto Insurance?

3 March 2022
 Categories: Insurance, Blog

Auto insurance is a great way to protect yourself against major financial stress. If you caused an accident, it typically helps pay for injuries and damages for the other driver. However, not all insurance is the same, and the bare minimum won't cover your injuries or damages. If you would like to know more, keep reading.

The Other Driver's Injuries and Damages

In most states, to legally drive, you need a minimum of liability insurance. This type of insurance does not cover you, but it will cover the other driver after you caused an accident. Not only does this coverage pay for any injuries, but it also covers property damage for the other driver's vehicle. If someone hits you, you typically file a claim with their insurance agency to get reimbursed.

A handful of states are no-fault states. In these states, you typically need personal injury protection coverage included in your auto insurance. In these states, anyone involved in an accident seeks reimbursement from their own insurance carrier. Even if the other driver caused the accident, you'd file with your insurance carrier instead of theirs.

Your Injuries and Damages Related to a Collision

If you want coverage for your damages and injuries related to an accident you caused, you need to get collision coverage and/or medical payment coverage. Collision coverage will help you pay for your car repairs or car replacement if you caused an accident. It may be required if you are leasing a vehicle or still repaying a car loan.

Medical payment coverage pays for your medical bills related to an accident you caused. It also covers anyone who was in your car at the time of the accident.

Your Injuries and Damages Unrelated to a Collision

It's not always a collision that causes damage or injury. For example, your car may start on fire or get bombarded by hail. A thief may steal stuff from inside your car or vandalize it. In this instance, you'll need comprehensive coverage.

Comprehensive coverage doesn't cover medical injuries, but personal injury protection can help. Comprehensive coverage, however, will reimburse you for damages to your car. Keep in mind, the damage must have been caused by a covered peril, so check your policy. Like collision coverage, comprehensive coverage if you are leading or repaying a loan.

Auto insurance is usually legally required if you want to drive. However, different states have different rules, and different policies cover different issues. If you would like to know more, contact an auto insurance agent in your area today.