Auto Insurance Coverages Explained

When you get low rates car insurance, you will need to decide on what coverages to include in your policy. Here is an explanation of the various types of coverages to assist your decision.

Liability & Medical Protection

• Bodily injury liability - if others are injured in an accident that is your fault, this coverage helps protect from bills such as medical expenses, emergency aid at the scene, funeral expenses, legal defense fees for you, etc. Most states require a certain level of bodily injury liability with low rates car insurance to drive legally.
• Property damage liability - if you damage another driver's property in an accident where you are at fault, this coverage will help pay for the driver's structural damage to buildings, repair or replacement of other stationary objects, and repair and replacement of the damaged vehicle. Again, most states require certain levels of this coverage in your low rates car insurance policy to drive legally.
• Medical payments coverage - this will help pay for medical treatments for accident-related injuries, regardless of fault. If you have sufficient health insurance, you may not need to include this coverage in your low rates car insurance policy.
• Uninsured/underinsured motorist coverage - this coverage pays for the medical expenses of you and your passengers in the event you are hit by an uninsured or underinsured motorist. Some states also allow this coverage to reimburse you for property damage caused by the uninsured driver.

Vehicle Protection

• Collision coverage - helps pay for the repair or replacement of your vehicle, up to the actual cash value of the car. You may consider eliminating this from your low rates car insurance policy if your car has little to no cash value.
• Comprehensive coverage - protects your car from unfortunate, non-accident-related events. For example, this coverage protects you from losses caused by a storm, theft, vandalism, falling objects, animals, and broken window or windshields (depending on your policy). Both collision and comprehensive coverages will have deductibles, which are the portion of the damages for which you are financially responsible. To keep your low rates car insurance premiums as cheap as possible, you will want to set your deductibles as high as you would be comfortable paying out-of-pocket.

If this does not answer all your questions about car insurance, have a look through some of our frequently asked questions.