Insurance Made Simple (pt. 2)

In part 1 of our Insurance Made Simple series, we acquainted ourselves with some of the basic terms and definitions that are associated with a typical auto policy. In part 2, we will now examine the different types of coverage available in a standard policy:

Coverage required by law

Bodily Injury Liability: helps protect you from paying medical costs, loss of income and funeral expenses of other people involved in an accident

Property Damage Liability: helps protect you from paying for the repair of replacement of another drivers car

If you get into an accident, do you know what is covered?

  • The vehicle(s) listed on your policy declarations or any car you replace it with
  • Any car you drive while yours is being replaced due to an accident
  • Any car you rent or borrow.

Who is covered?

  • You, the policy owner
  • Any resident in your home that has a drivers license
  • Anyone you give permission to use your car

(All images were taken from Allstate’s Auto Insurance Made Simple site)

Coverage protecting you from uninsured/underinsured drivers

Bodily Injury: Coverage includes your injuries or death, or those of your passengers or family members driving your car if it is hit by a driver with little or no insurance

Property Damage: Coverage includes damage to your car or property if youre hit by a driver with little or no insurance

Medical Coverage

Automobile Medical Payments: Coverage can help pay for some of your medical costs or funeral expenses if you or anyone in your vehicle is injured in an accident

Coverage accounting for damage to your vehicle

Collision Coverage: pays for damage to your car if you collide with another car or something else as a building, bridge or tree. If someone hits your parked car, this is considered a collision as well.

Comprehensive Coverage: pays for damage or less to your car caused by something other than a collision such as theft, fire, vandalism, windstorm or hitting an animal

Relevant Articles:

What is Bodily Injury Coverage Auto Insurance Made Simple

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