Auto Insurance Coverage

driving car in snowstorm There are a lot of choices when it comes to Auto Insurance Coverage. You need to understand the different types of car insurance coverage available so that you will be able to make the right selection for you and your family.

Although auto insurance cover may seem confusing at first, you will find that having the knowledge of what the different terms represent will give you confidence in choosing the types of coverage you need and in dealing with your chosen Insurance Policy Provider.

Who Does My Auto Insurance Cover?

Most auto insurance policies cover:

You and your spouse
Relatives who live in your house
Other licensed drivers who drive your car with your permission

Basic Types of Auto Insurance Coverage

There are 6 types of basic car insurance coverage that are considered primary coverage. There are also additional coverage options for special circumstances.

Here is the rundown:

Bodily Injury Liability - covers injury to other people you may harm as a result of an accident.
Property Damage Liability - covers damage you may cause to another person's property.
Personal Injury Protection - covers medical expenses for the driver and passengers in your own car.
Collision Coverage - covers damage to your own vehicle.
Comprehensive Coverage - covers damage or loss you receive as a result of something other than a typical accident, like theft, fire, vandalism, etc.
Uninsured or Underinsured Motorist Coverage - covers you for damages if you are hit by someone who is does not have insurance or not enough insurance.

In addition to those basic types of insurance, you can also get optional auto insurance cover for things like emergency road service, car rental expense, death or dismemberment, gap coverage, or even custom equipment coverage.

Don't assume that you are covered for every contingency. Even if you think you have full coverage be sure to clarify with your preferred auto insurance carrier exactly what your policy includes.

As my mom always said, "Read the fine print."

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