Auto insurance is a necessity for anyone who owns a car. It provides financial protection in the event of an accident or other damage to your vehicle. But what exactly does auto insurance cover? Here’s what you need to know about auto insurance coverage.
Liability Coverage
Liability coverage is the most basic type of auto insurance coverage. It covers the costs of any damage you cause to another person’s property or person in an accident. This includes medical bills, repair costs, and legal fees. Liability coverage is required in most states, and the minimum amount of coverage varies by state.
Collision Coverage
Collision coverage pays for damage to your vehicle caused by an accident. This includes damage from hitting another car, a tree, or a wall. It also covers damage from a rollover accident. Collision coverage is optional, but it’s a good idea to have it if you have a newer car or a car with a loan.
Comprehensive Coverage
Comprehensive coverage pays for damage to your vehicle caused by something other than an accident. This includes damage from theft, vandalism, fire, hail, and other natural disasters. Comprehensive coverage is also optional, but it’s a good idea to have it if you have a newer car or a car with a loan.
Uninsured/Underinsured Motorist Coverage
Uninsured/underinsured motorist coverage pays for damage to your vehicle caused by an uninsured or underinsured driver. This coverage is optional, but it’s a good idea to have it if you live in an area with a high rate of uninsured drivers.
Medical Payments Coverage
Medical payments coverage pays for medical bills for you and your passengers if you’re injured in an accident. This coverage is optional, but it’s a good idea to have it if you don’t have health insurance.
Rental Reimbursement Coverage
Rental reimbursement coverage pays for a rental car if your car is damaged in an accident. This coverage is optional, but it’s a good idea to have it if you rely on your car for transportation.
These are the basics of auto insurance coverage. Be sure to talk to your insurance agent to make sure you have the right coverage for your needs.
