08/15/2023
Wondering about coverages on your Auto Insurance policy.. Here's a summary of coverages offered and what they do..
*Your coverage options*
Most policies include liability coverage, which protects you financially if you' re responsible for an accident. This is required in most states. You can also buy optional coverages to protect your investment in your car, pay your medical bills or even help if your car breaks down.
Here's a list of coverages and a brief explanation of what they do.
**Liability** (Bodily Injury and Property Damage)
Your Insurance company pays if you injure someone or damage someone's property in an accident. When you buy liability, you choose a limit---the maximum amount they'll pay for a liability claim. Most states require you to have a minimum amount of liability coverage.
**Collision**
Your Insurance company pays to repair damage to your car when you hit, or are hit by, another vehicle or object, regardless of who's at fault.
**Comprehensive**
Your Insurance company pays to repair damage to your car that's caused by something other than a collision, such as fire, theft, vandalism, hail or flooding. They also pay for damage to
your vehicle caused by hitting an animal.
When you buy collision and comprehensive, you choose a deductible typically $250 or $500. This is the amount you pay to the repair shop. Your Insurance company will pay the rest.
While collision and comprehensive aren't required
by law, your bank may require them if you finance or lease your car.
** Uninsured Motorist Property Damage (UMPD)**
Your Insurance company pays to repair damage to your vehicle caused by a driver who doesn't have car insurance
** Uninsured/Underinsured Bodily Injury (UMBI)**
Your Insurance Company pays for your medical expenses, lost wages and other damages when you're hurt in an accident caused by a
driver who has insufficient or no insurance
**MedPay (also known as Medical Payments)**
Your Insurance company pays for the cost of reasonable and necessary medical care you get as the result of an accident, regardless of who's at fault.
**Personal Injury Protection (PIP)**
Your Insurance company pays for medical bills and- -in some states- other living expenses while you heal if you're unable to work as a result
of an accident, no matter who's at fault.
** Rental Reimbursement**
Your Insurance company pays for your rental car while your car is being repaired as part of a comprehensive or collision claim.
** Roadside Assistance**
Your Insurance company pays for repairs or towing when your vehicle breaks down due to mechanical or electrical issues, a dead battery, or a flat tire; you're locked out of your car; your vehicle runs out of gas; or your vehicle gets stuck in the snow or mud. (may vary depending on what your Insurance company offers)
**Loan/Lease Payoff (also known as Gap)**
Your Insurance company pays the difference between the settlement amount and the amount you owe the bank if we declare your vehicle
a total loss. This difference can easily be several thousand dollars for newer cars, which tend to depreciate in value quickly.
