No one likes to think that they may ever be in a car accident, especially one that causes injuries or serious damage to you or the vehicle. However, chances are good that at some point, you will be involved in some type of vehicular incident on the road.
This is why auto insurance is a good safeguard to have. In fact, it is against the law in every U.S. state to drive without auto insurance. But policies can be complicated, so it’s important to understand what auto insurance policies cover and how these coverages work.
Liability Coverage
Most states in the country require that motorists have liability insurance on their policies. Insurance companies typically have different levels of coverage they’ll offer for liability. You will need to have at least the minimum amount, but it’s always good to increase your amount of liability coverage.
Liability coverage consists of two parts: bodily injury liability and property damage liability. Bodily injury coverage is in place to pay for any medical costs that someone else incurs in an accident that you cause. Similarly, the property damage liability component will pay to repair any damage to other vehicles that you cause in a collision. The coverage can also pay to replace the vehicle if necessary.
Comprehensive Coverage
This is a component that you will want to have as part of your policy. As the name suggests, it covers a wide variety of issues. It covers your vehicle in the event of theft and vandalism. It also provides coverage for weather-related damage, such as hail. If fire damages or destroys your car, you will rely on comprehensive coverage to help pay for the repair costs.
If there is damage beyond repair, this coverage may replace the vehicle at its cash value. Be aware that this coverage has a deductible, meaning you will have to pay a certain amount out of your pocket before the coverage kicks in to pay for the rest up to the policy’s limit. You can select from different amounts of coverage and deductible amounts.
Uninsured and Underinsured Motorists
When someone is at fault for an accident, that driver’s insurance company should be the primary coverage to pay for repairs to the vehicle and cover your medical costs. But if the at-fault party does not carry insurance, your own policy’s uninsured motorist coverage will provide payment for these needs, just like the other party’s insurance would have.
When the at-fault driver does not have enough coverage to pay for your medical care or car repairs, underinsured insurance can make up the difference.
Personal Injury Protection
Often simply called PIP, personal injury protection comes in handy if you and others in your car have suffered serious injuries. If the other party’s insurance doesn’t have enough coverage, you can use your own policy’s PIP to take care of your medical payments. It may also cover other expenses resulting from your accident, such as lost income.
Collision Coverage
Collisions don’t always involve other vehicles. You may run into an object, such as a fence or barricade, while you’re driving. Regardless of the cause of the collision, this type of coverage can be used for the costs of vehicle repair or vehicle replacement if necessary. This coverage is typically optional, but there is a deductible.
Medical Payments Coverage
This is extra coverage for you and your passengers at the time of an accident. This insurance will pay for your medical care because of the injuries you suffered. This may include doctor’s office visits, hospital stays, surgeries, medication, medical equipment, X-rays, bloodwork, and anything else related to your and your passengers’ treatment and recovery.
The Bottom Line
As you consider purchasing or renewing a car insurance policy, be aware of these types of coverage. If you are in an accident, your insurance company should be your ally. However, if you are having trouble making a claim and getting payment, you may need legal representation. Call the dedicated team at Friedman Law at 402-476-1093 to get the right counsel. Get in touch with us today to talk about your next steps.