Liability Coverage?
Collision Coverage? Uninsured Motorist?
Medical Payments? But, I just need car insurance…
Purchasing car insurance seems simple enough, but when you really start shopping, it can
feel overwhelming. Let's break down the four basic coverages
of the standard personal auto policy: Liability coverage.
Liability Coverage provides you with the coverage you need in the event that you're 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 while
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 would pay for not only the covered
damages to their vehicle, but also for the medical expenses related to their injuries…
And yes, I said "their" injuries, not your own, which leads us to our second coverage…
Medical Payments Coverage. Because Liability Coverage only provides coverage for injuries caused to the other people involved you'll need Medical Payments Coverage to help pay medical expenses related to injuries
sustained by you or your passengers in an accident.
This coverage comes into play no
matter who is at fault. The third part of personal auto insurance
is Uninsured Motorists 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
insurance. It does this by helping pay 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 an absolute
necessity! In many states, you can also purchase additional
protection called Underinsured Motorists Coverage. Underinsured Motorist Coverage provides you
with additional protection, for when the other driver has insurance coverage, but just not
enough to fully cover all of 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…
Coverage
for Damage to your Car. Also known as Physical Damage coverage. It
pays for direct and accidental loss to your vehicle, there are two parts to Physical Damage
coverage: Collision – for when your car impacts another vehicle or object, or is upset, and
Other Than Collision, which covers almost any other type of direct, accidental loss
not excluded by your policy. As I said, the details of insurance can be
confusing…This video is just a short overview of the four main parts of the standard auto
insurance policy. To ask questions and learn more about the exclusions and limitations
that may apply, be sure to contact your local independent insurance agent right away!.