Car Insurance Basics You Should Know
When it comes to car insurance, most drivers know they need it. In fact, you probably have a policy because you know that you are required to do so. However, do you really know what your policy entails? Most don’t pay too much attention to their policy limitations until an accident occurs and they end up suffering major financial loss.
We are going to assist you in eliminating this problem by helping you to better understand how your car insurance works, coverage levels, and terminology. By the end of this short article, you should have a much better understanding of your car insurance policy and be able to make an informed decision on picking the right one for your needs.
Almost every state in the United States of America requires auto drivers to maintain some mandatory level of Youi insurance coverage. Let’s take a look at what these coverages are below.
Bodily Injury Liability – This type of coverage will cover the cost of injuries or funerals for other drivers that you are at fault for injuring or killing.
Property Damage Liability – This coverage provides funding to property owners for any damage you cause to their property while driving.
Medical Payments / Personal Injury Protection (PIP) – This type of insurance covers medical expenses and lost wages for you and your passengers in the event that injuries occur.
Uninsured / Underinsured Motorist Coverage – This type of insurance covers your vehicle in the event that the driver at fault for the accident did not have insurance. Those other drivers who do not have adequate coverage to pay for the cost of the damages to your vehicle fall into this category.
These are the base minimum coverages that all drivers should have on their car insurance policy. Each car insurance company will be able to educate you on the type of coverage that is mandatory in your state of residence.
There are other optional coverages in which you can add to your car insurance policy. These are intended to help lessen your financial burden in the event that an accident or other incident occurs.
Collision – This coverage reimburses you for damage to your car that is a result of your fault.
Comprehensive – This type of car insurance coverage will protect you from fire, flood, vandalism, hail, and other non-accident related damages to your car.
Glass Coverage – This type of coverage will reimburse you for costs associated with a damaged windshield on your vehicle.