Automobile Insurance Coverage

When it comes to automobile insurance there is no one size fits all policies. There are several different coverages, many of them are optional. If you’re not familiar with different elements of auto insurance you could find yourself in a situation that isn’t covered by your insurance company.

Part A – Liability Coverage

Required coverage that covers bodily injury and/or property damage to vehicles owned by someone else.

Liability coverage is broken down into three coverage categories:

1. Cost of injuries per individual in the other vehicle.

2. Cost of injuries to all passengers in the other vehcile

3. Cost of property damage to the other vehicle.

For example, S=suppose you had a 50,000/100,000/50,000 policy. That policy would cover:

1. Up to $50,000 of injuries to another person in he other vehicle during an accident.

2. Up to $100,000 total split between all passengers in the other vehicle during an accident

3. Up to $50,000 of damage to the other person’s vehicle.

Part B – Medical payments coverage

Optional coverage the covers medical payments for injuries sustained by you or passengers in the vehicle with you.

I highlighted you because if you do not have this coverage your injuries or your passenger’s injuries will not be covered in the event of an accident.

Part C – Uninsured motorists coverage

Optional insurance that covers your vehicle in the event that an uninsured motorist is deemed at fault for damage to your vehicle, this coverage will pay for property damage or bodily injury.

I highlighted your vehicle because if you get hit by someone who doesn’t have insurance your vehicle will not be covered unless you have uninsured motorist coverage.

Part D – Coverage for damage to the insured’s automobile (Comprehensive & Collision)

Collision – optional coverage that covers your automobile in the event that its damaged in an accident by another vehicle or other object such as a tree, fence or lake.

Comprehensive – optional coverage that covers your automobile in the event that it’s stolen or damaged in an incident which is not a collision. (i.e. fire, vandalism, hail damages, running into animals)

I highlighted your vehicle because your vehicle isn’t covered in the event of an accident or someone other incident if you don’t have comprehensive and collision coverage.

Part E – Duties after an accident or loss

Following an accident in order to be covered, the insured must:

• Give immediate notice to the insurance company

• Protect the automobile from further loss

• File written proof of the loss with the insurance company