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A Guide to Personal Auto Insurance

December 11, 2018

Shopping for car insurance may seem simple, but there are many components that make up a policy. Let’s take a look at some components that make up most policies, and how they can help cover you when things go wrong.

For Others

The following coverages will help cover other parties if the accident is your fault.

Bodily Injury Liability

This will pay out if you are responsible for another person’s injury or death in an auto accident. It will also pay for your legal defense if you are sued.

Property Damage Liability

This covers you if you are responsible for damage to another person’s property as a result of an accident.

For You

The following coverages will help cover you and your passengers.

Uninsured and Underinsured Motorist Coverage

If you get hit by a driver who doesn’t have insurance or whose insurance doesn’t fully cover your medical bills, this coverage will help cover you. In some states, it will also help with repairs to your vehicle too. While some states require uninsured and underinsured motorist coverage, many do not.

Medical Payments Coverage

If you, your passengers, or someone you authorize to drive your vehicle is injured in an accident, this will pay for medical payments associated with the accident. This can range from hospital visits, surgeries, X-rays, and more. This coverage is required in some states, but optional in others.

For Your Vehicle

The following coverages will help cover your vehicle.

Comprehensive

If your vehicle is damaged from a flood, fire, vandalism, theft or other covered incidents, this will help pay for the repairs to your vehicle.

Collision

If your vehicle is involved in an accident from hitting or being hit by an object, collision coverage will help pay for the repair expenses.

Emergency Roadside Service

Most insurance policies offer Emergency Roadside Service as an add-on coverage. While coverages range depending on the provider, this will help pay for towing, labor for flat tires, jump starts, and more.

Discounts

With many insurance providers, you may be eligible for certain discounts based on the type of vehicle you insure and your driving experience. These discounts can range from a Good Driver and Years of Experience Discounts to Anti-Lock and Anti-Theft Device discounts.