Types of Car Insurance Coverage

By | January 14, 2020

Types of Car Insurance Coverage

There are several types of insurance. These include: Liability Coverage, Medical Payments Coverage, Uninsured Motorist Coverage, and Coverage for Damage to Your Auto (Comprehensive and Collision, or Collision Insurance). Let’s go into detail on the different types of car insurance:

Liability Coverage

Sometimes called liability car insurance or auto liability insurance, liability coverage protects you from property damage or personal injury claims arising out of the ownership, maintenance, or use of an automobile.

Unless specifically restricted by your policy, you will have auto liability coverage while driving any car, pickup, or van so long as you have the owner’s permission to use the vehicle. A person who is using your car, pickup, or van with your permission will also be covered.

At the time the policy is issued, you will choose the limits of liability that you want. The limits that you select are the most that we will pay in the event of a loss.

Medical Payments Coverage

This type of coverage pays for medical expenses that you or family member incur as the result of an automobile accident. It also covers persons who are occupying an insured automobile. At the time the policy is issued, you will choose a coverage limit. The limits that you select are the most that will be paid for each person in connection with a single accident.

Underinsured Motorist Coverage

Even though liability coverage is advisable and often required, there are many irresponsible drivers who do not buy insurance. If an uninsured motorist causes an accident, you will not be able to recover any damages that you sustain.

However, if you purchase uninsured motorist insurance, your insurance company will pay you for the property damage and bodily injury. It will cover you, family members, and anyone else occupying an insured automobile. The limits for this coverage are usually the same limits that you selected for liability, although you can choose lower limits.

There are also times when a person who causes an accident has liability insurance, but your damages exceed the limits of that person’s coverage. In some states, underinsured motorist coverage is included in your uninsured motorist coverage. In other states, you can purchase underinsured motorist insurance, which covers your excess losses up to the limit set forth in the policy.

Comprehensive and Collision

If you have comprehensive and collision insurance, your insurance company will pay for damage to an insured automobile, regardless of fault. Most banks and finance companies require you to maintain comprehensive car insurance and collision insurance on your car if it is financed.

For more on all the types of coverages, https://www.thegeneral.com/car-insurance/basics/.

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