Auto Insurance Made Easy
|Understanding auto insurance can often be like trying to learn a foreign language. Many find it confusing and intimidating. Fortunately, OnlineAutoInsurance.com can help.|
We have composed a quick reference designed to help you understand some of the most common kinds of coverage.
Liability covers your legal liability for bodily injury and property damage (BI/PD) to others up to the dollar limits you select for damages caused in an auto accident. Liability insurance is a requirement in most states.
Under liability, your auto insurance company pays for damages to an injured person and for property damage that you are legally obligated to pay as a result of an accident. If you policy covers you in the event you are sued after an accident, your insurance company will pay for a lawyer to defend you.
Liability limits generally appear as three numbers, for example, 15/30/10 or 25/50/15. The first number refers to the maximum amount in thousands, which will be paid out for bodily injury per person. The second number is the total amount that an auto insurance company will pay out as a total per accident regardless of the number of injured persons. The third number represents the maximum dollar amount in thousands that will be paid out for property damaged caused to others which you are liable for.
Uninsured Motorist coverage (UM), available in most states, was designed to protect you if you were to be struck by an uninsured motorist. UM coverage, if available, consists of two parts. Uninsured Motorist Bodily Injury (UMBI) and Uninsured Motorist Property Damage (UMPD). UMBI will provide bodily injury protection up to the policy limits in case you were to be struck by an uninsured motorist. UMPD will provide coverage for your property damage such as your auto, in case you were to be hit by a driver not carrying auto insurance.
Collision coverage will provide coverage for damage to your auto if it were to collide with another auto or object. Collision coverage involves a deductible amount you select when you purchase your policy. A deductible is what you are required to pay before your insurance company pays for repairs. Remember that the deductible is what you are required to pay in case of a claim not covered by another person or their auto insurance company.
Comprehensive covers damage caused by events rather than a car collision. Some examples are fire, theft, vandalism, hail and flood. It also covers damage caused by your vehicle colliding with animals. Comprehensive coverage would cover you if your car was stolen and may cover your costs of a rental car subject to your daily limit. For this coverage, a deductible usually also applies.
Medical Coverage may be offered by your insurance company depending on the state in which you reside. Medical Payments coverage or personal injury protection (PIP) will generally provide coverage to you as a result of a car accident.
Feel free to compare auto insurance quotes for different coverage no matter what state you reside in within the United States. Some coverage may be surprisingly inexpensive and is worth taking the extra time to quote. Other coverage can be available as well as the coverage explained in this article.