A typical auto
insurance policy would consist of coverage for Bodily Injury,
Comprehensive, Property Damage, Collision, Uninsured or
Under-insured motorist and medical / No-Fault coverage. At
minimum, you would have to carry the coverage required by your
state to be able to register and drive your vehicle. It's
important however, to consider purchasing enough coverage to
protect your assets so that you can ensure that you can be
financially responsible in the event you injure some one in a
motor vehicle accident. As everyone has individual needs, it's
suggested you consult with your insurance company.
Below are the
common types of auto coverage along with brief descriptions:
Bodily
Injury Liability Coverage: This is mandatory in most
states. Bodily injury coverage pays for medical bills,
rehabilitation, lost wages, treatment and/or funeral costs
for anyone injured or killed by your vehicle. It will also
pay for "pain and suffering" damages when a party
successfully sues.
Personal
Injury Protection: This pays medical expenses and a
percentage of lost wages to you or anyone authorized to
drive your car
Property-Damage Liability Coverage: This coverage pays
for repairs and replacement of vehicles and other property
damaged (if you or another authorized driver causes an
accident).
Medical
Payments Coverage: Usually this is optional. This type
of coverage pays for medical expenses over and above amounts
covered by personal insurance protection.
Collision
Coverage: Pays for damage to your car, less any
deductible, no matter who is at fault. If your car is
financed, lenders may require you to buy this coverage.
Auto
Replacement: This pays for the full replacement value of
the vehicle.
Comprehensive Coverage: Pays for damage to or loss of
your car in the event of theft, fire or vandalism. If your
car is financed, lenders may require this coverage.
Uninsured
or Underinsured Motorist Coverage: Protects you, your
passengers or anyone authorized to drive your car against
bodily injury caused by an uninsured, underinsured or hit &
run motorist.
Towing
and Labor: Covers up to a specified amount for towing
and labor charges when your car breaks down...not just for
accidents alone.
Rental
Reimbursement: Covers your expenses up to a specified
amount per day for car rental or transportation costs while
your car is being repaired after an accident.
Umbrella
Policy: This pays for losses above and beyond those
covered by auto or homeowner's insurance.
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