If you have a car, then you have car insurance. Most all states have laws that require car insurance. But do you really know what coverage your policy has? If you are in an accident, what will your insurance cover and what will you be expected to cover? It is important to understand the basic coverage that your policy has and what each component really means to you in case you are involved in a car accident.
Here are the basic types of coverage included in most automobile insurance policies:
Property Damage Liability – This is what most people think their car insurance is for. This covers property damages to another individual’s car if you or a family member have caused an accident.
Bodily Injury Liability – This provides coverage for bodily injury claims from hospitals and doctors for individual’s injured in an accident
Uninsured and Underinsured Motorist Coverage – This coverage protects you if your car has been hit by a negligent driver that doesn’t have insurance or doesn’t have enough insurance to cover damages. In most all cases, this covers bodily injury losses, and sometimes property damage losses.
Physical Damage Coverage – This will cover damages to your car if you are involved in a automobile collision or if your car is damaged in a storm.
These are abbreviated descriptions of insurance coverage that might be included in your automobile policy. Call Insurance Doctor if you have questions about your current policy.