Car Insurance Coverage

Car insurance can help you pay for certain vehicle-related costs that you are responsible for. For instance, if you are the at-fault driver in an accident, then you will be responsible for paying to repair or replace other people’s property, any medical costs from injuries and other legal expenses.

Each insurance type has different coverage levels, and you should make sure you have the amount needed in the event of an incident. If you have a vehicle that is expensive to repair or replace, then more coverage could save you in the long run.

Liability Insurance
You are liable or legally responsible to pay for damaged property or medical costs for injuries if you are ever at fault for an accident. Liability car insurance will cover the cost you are responsible for up to a limit and after the deductible.

The three types of liability insurance are:

·      Bodily injury liability, which pays for medical bills, lost wages as well as pain and suffering for anyone injured due to an accident you caused. This includes other drivers, their passengers and any pedestrians. This will not cover your medical expenses or your passengers. Depending on the particular coverage levels, there may be an option to extend coverage to other drivers of the vehicle with the policy.

·      Property damage liability, which covers any damage you cause to other people’s property including cars, fences, mailboxes and buildings. However, this coverage will not include your vehicle and property.

·      Uninsured/Underinsured motorist coverage, which covers damages to your vehicle that are from a hit-and-run or from other drivers at fault who do not have coverage or adequate coverage. Although you are not at fault for these incidences, you are still responsible for paying repair and replacement costs.

Coverage for Your Vehicle
High-value cars are expensive to repair or replace, and higher coverage levels can reimburse you should something happen to your vehicle. Aside from car collisions, there are many incidents, such as inclement weather, fallen objects and vandalism, that can cause damage to your vehicle.

Liability insurance packages will not cover repairs or replacement of your vehicle. If you have a new, vintage or otherwise special vehicle, then you may want to get coverage for it.

The two types of car insurance are:

·      Collision, which covers repair costs related to impacts, such as a car accident or even a pothole. This includes when you are the driver at fault or if a driver who does not have coverage hits you. However, it will not cover repair costs related to age, such as mechanical failures.

·      Comprehensive, which covers repair and replacement expenses from weather damage like flooding, fire and earthquakes as well as from objects like baseballs, debris, deer and other animals. This car insurance will also cover vandalism, explosions and broken glass. It will reimburse you for the value of your vehicle should it be stolen.

Having these additional insurance packages will ensure that your out-of-pocket costs are never more than your deductible for any damage to your car. These policies are especially beneficial if you park on the street, near construction and high rises or in an area prone to weather issues. 

Additional Insurance Packages to Consider
You may consider additional coverage levels if you want your medical costs and those of your passengers if you are ever at fault in an accident. Likewise, you probably want to avoid paying for a vehicle that you no longer have.

Additional auto insurance options include:

·      Personal injury protection (PIP) car insurance is required by 15 states. This type of coverage pays for medical costs, work loss benefits, rehabilitation expenses and funeral costs no matter who is at fault. Its coverage extends to you, your passengers and other drivers on your policy.

·      Guaranteed auto protection (GAP) insurance packages are mandatory for new cars still financed. Vehicles’ value deprecates, and you may owe more to a lender than the value of your car. GAP coverage will pay for the difference between financing and worth. This means you will not owe the lender the depreciated value should you total your car a few months after driving off the dealership lot.

·      A personal umbrella policy (PUP) will provide coverage should you owe money as part of a lawsuit. While standard car insurance may pay for their medical bills and damage to their vehicles, a PUP policy will pay in the event victims sue for pain and suffering and other damages and you are the at-fault driver.

Many car insurance companies offer roadside assistance and car rental reimbursement as part of collision or comprehensive policies. You may be able to add these services for a nominal fee.