Types of Coverage for Auto Insurance:
There are a number of types of coverage in the US that are available depending on what you choose to purchase.
Liability
Liability coverage is offered for bodily injury or property damage incurred at the fault of you the driver. The minimum amount of liability coverage required by law varies per state and can be raised resulting in a higher premium or cost to you the driver. Bodily injury included any injury to one’s person including you or anyone else involved in the accident. This would cover medical expenses. An example of property damage would be if you were to strike a telephone pole and were responsible for replacing the damage to that pole. *Liability coverage is available as a combined single limit or split limits.
Combined Single Limit
Combined single limit coverage combines both property damage and liability coverage under a single umbrella.
Split Limits
Split limit coverage splits the coverage for property damage and bodily injury. The limits you set for each of these types of coverage will affect your premium rate.
Full Coverage (Collision and Comprehensive)
Collision
Collision coverage insures your vehicle for any damages occurring during an accident.
Comprehensive
Comprehensive coverage insures your vehicle for any damages occurring not in an accident. This includes fire, theft, vandalism, weather, etc.
Uninsured
Uninsured coverage provides coverage for damages from a party who is not insured or is under insured.
Loss of Use (Rental Coverage)
Loss of use coverage provides reimbursement for any car rental expenses associated with having an insured vehicle repaired due to a covered loss.
Deductible
A deductible is the portion of the claim not covered by the insurance company. The higher the deductible, the lower your rate.
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