Purchasing car insurance seems simple enough but when you really start shopping, they can feel overwhelming. Let’s break down the four basic coverage.
Liability coverage: viability coverage provides you with the coverage you need in the event that you are at fault in an automobile accident. This coverage offers two types of protection; coverage for injuries to other people and coverage for damage to someone else’s property when you or a family member are operating any automobile. So, if you accidentally hit someone else’s car and injure the other driver, your liability coverage will pay for not only the cover damages to their vehicle but also for the medical expenses related to their injuries. Yes, I said their injuries not your own which leave this to our second coverage;
Medical payments coverage: Because liability coverage only provides coverage for injuries caused to the other people involved, your medical payments coverage help pay medical expenses related injury sustained by you or your passengers in an accident. This coverage comes into play no matter who is at fault.
The third part of auto insurance is uninsured motorist coverage or UM coverage: UM coverage protects you if you’re involved in an accident with someone who breaks the law by not carrying their own auto liability. It helps paying for any medical expenses you incur as a result of getting hit by an uninsured driver. And, although it may not sound fair, these types of accidents do happen. According to statistics nearly one in seven drivers on the road is uninsured, which makes protecting yourself absolute necessity. In many states you can also purchase additional protection called underinsured motorist coverage which provides you with additional protection for when the other driver has insurance coverage but just not enough to fully cover all your medical expenses. By now you may be wondering how you’re going to pay for damages to your own car?
That’s where the fourth and final part of your auto policy comes into play: physical damage coverage – coverage for damage to your car. It pays for direct and accidental loss your vehicle.
To ask questions and learn more about the exclusions and limitations, contact us!