What To Know About The Different Auto Insurance Coverage Options
Do you need to purchase auto insurance, but feel a bit confused about all of your coverage options? It will help to break down what they are and how they can protect you.
Your auto insurance will pay money to others if you caused an accident that led to another person being injured through bodily liability coverage. It is designed to pay for their medical bills, pain and suffering, and lost wages. However, bodily liability coverage is not unlimited, since you decide your coverage limits.
There are two types of limits for bodily liability coverage. This includes the limit of how much each person can receive in coverage and the total amount of coverage that will be paid out. It does not matter which car the person is in either since it can even cover passengers in your vehicle. However, bodily liability coverage will not cover your personal medical expenses.
Property Damage Liability
The purpose of having property damage liability coverage is to pay for damage to property that you are responsible for destroying. This includes damage caused to other vehicles, buildings, and even landscaping. Much like with bodily injury coverage, there are limits to how much will be paid out in an accident.
Comprehensive coverage will help pay for damage caused to your car by accidents unrelated to a vehicle collision. This includes theft, vandalism, flooding, fires, and things of that nature. If you were to hit an animal while driving, collision coverage will help pay for the damages as well. Think of collision coverage as protection from unforeseen accidents that are out of your control, but another driver isn't responsible.
What makes collision and comprehensive coverage different is that collision coverage is for when you are in control of your car and hit another object or vehicle. This includes accidents that you are responsible for, such as running a red light and hitting a vehicle or backing up into a street light pole that you didn't see. You'll be able to use insurance to fix your vehicle, even if it was your fault.
Underinsured & Uninsured
If you were to get into an accident caused by another driver, their insurance policy is going to be the main way that you and your passengers receive compensation. However, what happens if the driver has low coverage limits or no insurance at all? Rather than having to sue the other driver for excess damages, underinsured and uninsured coverage is a way to use your own policy to pick up what you are owed. It can help simplify the process since the other driver may not have the money to pay up out of their own pocket, and you'll be fighting in court to get the money you deserve. To learn more information about auto insurance, reach out to companies such as Clover Insurance.