An auto insurance policy is a combination of different types of coverage. Bodily injury liability coverage applies to any injuries caused by you, the designated driver, or the policyholder. This coverage also extends to your family members if they are driving someone else's car with your permission. Collision coverage covers any damage to the car resulting from a collision with another car, an object, or a rollover.
It also covers damage caused by potholes. This coverage usually comes with a separate deductible. Even if you are at fault for the accident, your collision coverage will reimburse you for the repair costs minus the deductible. If you are not at fault, your insurance company can try to recover the amount it paid you from the other driver's insurance company and reimburse your deductible. Comprehensive coverage provides compensation for losses due to theft or damage caused by something other than a collision with another car or object.
This includes events such as fires, falling objects, missiles, explosions, earthquakes, windstorms, hail, floods, acts of vandalism, riots, and contact with animals such as birds or deer. It will also cover windshield repairs if it is cracked or broken. Liability coverage includes both bodily injury and property damage liability coverage and is mandatory in most states. This coverage provides compensation for injuries suffered by other people and for the damage your vehicle causes to someone else's property if you cause an accident. It is very important to have sufficient liability insurance because if you are involved in a serious accident, you may be sued for a large sum of money.
If you are found responsible for causing harm as a result of an accident, this coverage can pay up to the limit you select and can offer a legal defense if you are sued. Medical payment coverage protects you and passengers in your vehicle who may be injured in an accident, no matter who is at fault. Understanding the differences between the types of coverage available can help you choose the right policy for you. This coverage covers the treatment of injuries to the driver and passengers of the policyholder's car. Comprehensive insurance is generally sold with a separate deductible, although some insurers may offer the basic portion of coverage without a deductible.
If in the first five years you have accumulated the total of your new car, this coverage covers the cost of replacing it with a new car of the same make and model. If your vehicle is totaled (considered a total loss), this coverage can pay the difference between the actual cash value of the vehicle and the outstanding balance of the car loan or lease. Available only in Colorado and Illinois, this limited endorsement of ride-sharing coverage can help protect people who drive for transportation network companies. The type of coverage you need depends on a variety of factors such as where you live, whether you own or rent your car, and how old it is. This coverage covers damage that you (or someone driving your car with your permission) may cause to someone else's property.