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:
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?
Who is covered?
(All images were taken from Allstate’s Auto Insurance Made Simple site)
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
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
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