Understanding Car Insurance Coverages

October 19, 2017 · Posted in General Articles on Car Insurance 

Comprehending your auto insurance policy can be difficult. Reading through it is very cumbersome and boring. For many people trying to figure out their auto insurance is an exercise in futility. Here are some suggestions for helping you understand your car insurance policy. Let’s try to break it down and make it easier to understand.

There are several types of car insurance. First lets take a look at liability insurance. Bodily injury liability and property damage liability are the two types of liability insurance you will deal with the most. Bodily injury liability coverage will assist in any medical or funeral expenses as the result of an accident caused by you. If the accident is your fault this insurance will also cover your passengers. States dictate what minimum coverage amounts but you should consider buying more than the minimum.

If you are in an accident and you damage another car, house or other property this is where your property damage liability coverage protects you. Again, the state you live in requires certain minimums in property damage liability. You may want to buy more coverage than the minimum. What if you get into an accident with an expensive Rolls Royce? Minimum coverage may not be enough protection and prevent you from being sued.

If someone else nails you and messes up your vehicle your collision insurance coverage will handle this. You typically will have a deductible to pay. This is normally $500 to $1,000. The rate of your premium will depend on many factors like the value of your car and if you own it outright.

Fire, theft or similar problem is covered by your comprehensive insurance. This coverage kicks in when you car catches fire, is stolen or if a tree falls on it. It usually covers non collision type situations.

These are the major types of insurance coverage. It is important to understand them and alter them if needed. Insurance is one of those things that you kind of hate to pay for but those few times you need it, it sure is nice to have.


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