Basically auto insurance policy consists of six coverages. These coverages are offshoots of the the three basic coverages i.e. property, liability and medical coverages.
1. Property damage liability coverage: The coverage given for the damage done by you or your driver or some one who is driving your vehicle with your permission to the property of others is termed as property damage liability coverage. The properties that you damage may include private properties or government properties such as fences, government buildings, light poles, government vehicles and other properties.
2. Collision coverage: The damage done to the vehicle resulting from an accident, with another vehicle or object is covered in this collision coverage. Collision coverage will pay the cost of repairing your vehicle, though you are responcible for the accident .
3. Comprehensive coverage: The loss due to the theft of your vehicle, damages caused by other causes such as fire, explosions, earthquakes, floods, colliding with animals such as deers, cows and other domestic animals are covered by comprehensive coverage.
4. Bodily inujry liability coverage: If your designated driver or your self damage or injure others in an accident, The cost of treatment of injuries and hospital bills of the injured are paid by Bodily injury liability coverage.
Liability insurance is very important. It is important to have more than the state required minimum to protect your assets because in case of an accident you may have to pay huge amount of compensation.
5. Medical Payments or Personal Injury Protection(PIP): The cost of treatment for injuries of the passengers and driver of the policy holders vehicle is covered in PIP. PIP also covers medical payments lost wage and also funeral costs
6. Uninsured and Underinsured Motorist Coverage: If the policy holder, his family members or his designated is hit by an uninsured or hit and run driver, this coverage will reimburse the policy holder. Even if the policy holder mets with an accident as a pedistrian, Underinsured motorist coverage will pay the total losses.
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