What You Should Know About Automobile Insurance

There are two basic types of coverage. One involves damage to property. The other involves injury to a person. To cover these two key areas, most auto policies provide coverage in the following categories:

Automobile Liability: covers damage to property of other people and injuries suffered by those people that you are legally responsible for.

Collision: covers damage to your own vehicle.

Other than Collision: coverage pays to repair damage to your car caused by fire, theft, glass breakage, vandalism, flood, falling objects, contact with animals or fowl and other similar events.

Medical payments: coverage pays for immediate medical expense for you and your passengers who are injured due to an accident.

Uninsured and Underinsured Motorists: coverages protect you if you are injured in an accident where another party is responsible for your injuries but that party is uninsured or they do not carry enough insurance to cover your loss. You may also have coverage for damage to your vehicle.

Personal Injury Protection (PIP): coverage is like medical payment coverage in that it is intended to pay immediate medical expenses but may also be used to cover lost wages, incidental expense related to an injury and may also be used for funeral expense. It is paid without consideration for fault and a policyholder may have to exhaust its limit before receiving a liability settlement from another insurer.

These coverages are subject to certain limits and conditions and they will vary from state to state. Always read your policy. Other coverages may also be available to you.

Please feel free to contact us to further discuss this important topic.