What’s covered by basic auto insurance policy?
Mandates for auto insurance vary on different states. In general there are six basic types of coverage for car policies.
Bodily injury liability – this coverage applies to injuries that the policyholder inflicts to someone else. You and any member of the family listed on the policy are covered, too, even when driving somebody else’s car with their permission.
Personal injury protection (PIP) or medical payments – this coverage pays for the medical treatment of injuries of the driver or policy holder, including its passengers. Aside from medical payment coverage, an extensive PIP can also cover lost wages and replacement services, and funeral costs.
Property damage liability – this covers damages done by you or by someone driving your car with your permission. In most cases it is usually means damage to someone else’s car, however it can also include damage to fences, buildings, and other structural damages.
Collision – this coverage pays for your car;s damages that was caused by collision with another vehicle, another object, tree, lamp post, potholes, or result of flipping over.
Comprehensive – this reimburses loss due to theft or damages done to your car that is caused by something other than collision with another object or vehicle. It also covers natural disasters and events such as flood, earthquakes, fire, hail, falling objects, explosion, riot, vandalism, or contact with animals that resulted to your car being damaged.
Uninsured & underinsured motorist coverage – this cover damages that is caused by a an uninsured driver or with an insufficient insurance. This also reimburses you if you’re struck by a hit-and-run.
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