It’s important to understand the different types of car insurance coverages and how they protect you. Liability coverage is designed to help pay for repairs, medical bills, and other costs associated with an accident where you are determined to be at fault.
This type of coverage is mandatory in most states since it helps protect others from financial damages caused by your actions. Collision coverage helps pay for repairs to your vehicle if you are involved in a collision with another vehicle or object, regardless of who is at fault. Comprehensive coverage pays out if the damage to your car is caused by an event other than a collision, such as theft or vandalism.
Understanding Car Insurance Coverage: What You Need To Know
- Bodily Injury Liability: Bodily injury liability coverage pays for medical bills, lost wages, and other damages that may arise from an accident where you are at fault. This type of coverage is mandated in most states as it helps protect others from financial losses due to your actions.
- Property Damage Liability: Property damage liability coverage provides financial protection for damages to another person’s property caused by you in an accident. This could include damages to a car, home, or other property.
- Collision Coverage: Collision coverage pays for repairs or replacement of your vehicle if it is damaged in an accident with another car or object, regardless of who is at fault.
- Comprehensive Coverage: Comprehensive coverage pays out when your car is damaged by an event other than a collision, such as theft, vandalism, or hail damage.
- Personal Injury Protection: Personal injury protection coverage helps cover medical expenses and lost wages if you are injured in a car accident, regardless of fault. This type of insurance is usually required in no-fault states.
- Uninsured/Underinsured Motorist Coverage: Uninsured/underinsured motorist coverage helps cover medical bills and other costs in an accident where the at-fault driver does not have enough insurance to pay for your damages.
- Gap Insurance: Gap insurance helps cover the difference between what you owe on your car and what is paid out by the other driver’s insurance. It can also help pay for a replacement vehicle if your car is totaled in an accident.
- Roadside Assistance: Roadside assistance coverage helps cover the cost of minor mechanical repairs, towing services, and other emergency services if you are stranded on the side of the road.
- Rental Car Reimbursement: Rental car reimbursement coverage helps pay for a rental car while your car is being repaired following an accident.
- Custom Parts and Equipment Coverage: Custom parts and equipment coverage helps pay for repairs or replacement of non-factory parts if they are damaged in an accident.
By understanding the different types of car insurance coverages and how they protect you, you can make sure that you are properly insured in case of an accident. Talk to your insurance agent or provider to determine what coverages are right for you.
Brook Insurance & Associates is available to help you find the best coverage at the lowest possible price. Contact us today for more information.