The Three Categories For Auto Insurance

Are you shopping around for car insurance and feeling a bit confused about what kind of coverage that you need? It will help to break it down into these three categories.

Coverage For Others 

The main type of coverage for others that you'll want to have is bodily injury coverage, which is when you cause an accident that injures somebody else. Bodily injury coverage has limits that state how much the insurance company will pay per person, and how much total coverage you get per accident. For example, you may want an insurance policy that has $250,000 worth of coverage per person with a maximum of $500,000 of injury coverage per car accident.

Property damage coverage also will have a limit, which pays for damage that you cause to another person's vehicle. The limits will cover the maximum amount that the insurance pays out for personal property damage, which includes the vehicle itself and items inside the vehicle. 

Coverage For You

Medical payments coverage, often known as med pay, will pay for injuries to people in your vehicle. The limits of medical payments coverage are typically defined as how much insurance will pay out per person. This means that if you have 4 people in your vehicle with $10,000 in medical payments coverage, you'll receive up to $10,000 for each person with a maximum of $40,000 of coverage. 

Uninsured and underinsured motorist's coverage will protect you if you get into an accident with someone that doesn't have insurance or doesn't have enough insurance. This can protect you if you are involved in a hit and run accident, or if you have injuries and property damage that exceeds the coverage limits of the other driver. 

Coverage For Your Vehicle

Comprehensive coverage is what you purchase when you want coverage for damages caused by weather, animals, or other factors that are typically out of your control while the car is parked. Collision coverage is for when you cause damage to your vehicle that you are responsible for. This is when you get into an accident by hitting a car, building, guard rail, or anything else of that nature. 

By combining all of these types of coverage you will end up having full coverage auto insurance. You'll be taken care of in all types of situations where there can be a financial loss due to damages caused by an accident, either due to your own fault or another driver. For more information, contact an insurance company near you today.