Typical Coverages

Of course, every auto policy is different, but the features of basic coverage tend to be somewhat universal. We'll list and describe the typical coverages included in a traditional car insurance policy.

Protecting Your Car: Collision & Comprehensive

These coverages are unique in that they are the only portions of the policy that protect your vehicle rather than those you might damage in a collision. Often, car insurance tips focus on how to either reduce your collision and comprehensive premiums or do away with the coverages entirely. If you have a car with any significant cash value, however, you will need to purchase both protections. Collision coverage is not difficult to understand; it reimburses you for damage that your vehicle sustains in a covered accident. Depending on the extent of the damage, your policy may pay to repair the vehicle or total out the damage and replace it. Almost all other damage that your car sustains, or damage unrelated to a car accident, is covered by the comprehensive portion of your policy. For example, if your car were stolen or damaged by an engine fire, your comprehensive coverage would reimburse you for your losses.

Safeguarding Your Assets: Liability Protection

It's almost impossible to watch TV these days without seeing an ad for an auto accident injury attorney. The ubiquitousness of these ads is a testament to the increasingly litigious nature of our society. People will sue other drivers after even the most minor accidents, claiming neck, back, or other injuries. Bodily injury and property damage liability coverage are designed to protect you should such a situation arise. These coverages pay for the injuries and property damage you inflict on another person or persons in a covered collision. For instance, if you hit someone's car, caused $5,000 of damage, and broke the driver's arm upon impact, your liability coverage would pay for his medical expenses and would foot the bill to repair his vehicle. Another important feature of liability coverage is that it will provide you with legal counsel if you are ever sued. One of the most important car insurance tips we can offer is to make sure you carry at least the minimum amount of liability coverage required by your state's law.

Preparing for the Worst: Uninsured and Underinsured Driver Coverage

Any site for car insurance tips should urge drivers to carry uninsured and underinsured motorist protection. In fact, in some states, these coverages are required by law. Uninsured motorist coverage will pay for your medical expenses and those of your passengers in the event you are hit by a driver who does not have insurance or does not have enough insurance. Some states broaden the scope of this coverage even further, allowing it also to pay for the property damage to the driver's vehicle caused by the inadequately insured driver. Depending on your policy, uninsured motorist coverage may also protect you in hit-and-run incidents. For more information about car insurance tips, look through our frequently asked questions.