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Understanding Auto Insurance and Coverages.
Basic auto insurance is mandated by most U.S. states and provides financial protection in case your car causes an accident that damages someone else’s car or property, injures someone or both. To make the best decision about purchasing car insurance coverage you may need, you will want to understand what is covered and what is not. Then you will need to consider coverage amounts as well.
Below is a list of the types of coverage available.
Mandatory coverage
Almost every state requires car owners to carry the following auto liability coverage:
Bodily Injury Liability: This covers costs associated with injuries that you or another driver causes while driving your car.
Property Damage Liability: This coverage will reimburse others for damage that you or another driver operating your car causes to another vehicle or other property.
Most states require that you carry the following coverage:
Personal Injury Protection (PIP): Provides reimbursement for medical expenses for injuries to you or your passengers. It will also cover lost wages and other related expenses.
Uninsured Motorist Coverage: Reimburses when an accident is caused by an uninsured motorist and/or in the case of a hit and run.
Optional coverage
Legally mandated auto insurance only covers the cost of damages to other vehicles that you cause while driving, it does not cover repairs to your own car.
To cover your own car, you need to have the following optional auto insurance coverages:
Collision: This optional coverage reimburses you for damage to your car that occurs as a result of a collision with another vehicle or other object.
Comprehensive: This provides coverage against theft and damage caused by an incident other than a collision, such as fire, flood, vandalism, hail, falling rocks or trees.
Glass Coverage: Windshield damage is common, and some auto policies include no-deductible glass coverage.
Gap insurance: If you lease or finance your car, lenders will require you to carry collision and comprehensive coverage. Note that collision and comprehensive only cover the market value of your car, not what you paid for it. If your car is totaled or stolen, there may be a $ gap between what you owe and the value on the car. To cover this, you get a gap insurance to pay the difference.
To help you answer any further questions please call our Agents at (800) 889-4013