Something that all drivers must have in order to drive legally is car insurance. However, despite the fact that all drivers following the law possess car insurance, very few of those drivers actually understand all the technical aspects of what their insurance covers until the time comes that they need it. This can be a problem because if the insurance you have doesn’t cover the problem you’re faced with, you can suddenly find yourself responsible for very expensive repair bills. With that in mind, below is an explanation of what car insurance can actually cover and what you should make sure yours covers in case of an accident.
Collision Coverage
Something your car insurance should include is collision coverage. After a deductible is paid, this coverage will kick in to cover damage done to your car after a collision with another vehicle, a tree, street pole, or other stationary objects. It may also cover you for damage done to your car by a pothole.
Bodily Injury Liability Coverage
Bodily injury liability coverage is something else that you should probably want in your car insurance policy. This coverage protects you from injuries done to others by your car if you were to be involved in an accident. It is very important. Without it, you will probably end up being sued for those medical bills. Overall, you should have enough of this coverage to protect your home, savings, and more from the possibility of a lawsuit. Speak with an auto insurance agency about how much you need.
Personal Injury Protection Coverage
Personal injury protection, or PIP for short, coverage protects the driver and any passengers in the car of the insurance policyholder. It can pay for things like medical bills, wages lost due to the accident, the cost of services that couldn’t be performed by the injured, and even funeral costs. Having this in your policy is very important.
Uninsured and Underinsured Driver Coverage
In certain cases, you may end up having a collision with another motorist that is breaking the law and does not have car insurance. In other cases, that driver may have very little coverage that is not actually adequate for a two-car collision. In such cases, uninsured and underinsured driver coverage should help protect you.
Comprehensive Coverage
Sometimes, something bad may happen involving your car other than an auto accident. For example, someone could break into your car and steal what’s inside. In another example, a political riot by young hooligans may destroy your car. In those and other cases such as bad weather or acts of God, you can be protected by compressive coverage.
Overall, it’s very important to understand all the different kinds of coverage that are included with an insurance policy. Read over the fine print before agreeing to purchase any sort of insurance plan. You should know what you’re paying for. You should also know if the coverage you are paying for is inadequate in any way. If you don’t actually read and comprehend the text, you’ll have no idea either way.
