What is basic personal auto insurance coverage? In most of the states in the US, you will receive some financial protection if an accident occurs wherein; you or any other driver driving your vehicle injures someone or someone else’s property or car.
As a rule of thumb, most of the experts suggest that you ought to buy adequate auto insurance that will cover other conditions too. And one of the main reasons for the same is that minimum coverage in all states will not compensate for any serious accident.
In this article, let us go through a few types of coverage and the cost you have to incur for the same.
- Coverage -Mandatory
Auto insurance coverage that is mandatory for all car owners in all states include the following-
- Bodily Injury Liability
It will compensate for death or injury that you or anyone else driving your car causes to another car, building, or property.
- Property Damage Liability
Under this type of coverage, the individual that has suffered damage will get the reimbursement caused by you or any other driver driving your car. Similar to the above instance; the damage can be to property or car.
Types of optional coverage
Unlike the above types of vehicle insurance coverage that covers or compensates for damage caused to someone else’s property that is caused by your car, it does not cover or pay for the damage that occurs to your vehicle. As such, you will require the following optional coverage plans that can address the above issue. These are as follows-
- Glass coverage
It is very common for the windshield of your vehicle to suffer damage. While some of the policies include “no-deductible” coverage, you can buy supplemental glass coverage.
If your car suffers damage due to collision with another vehicle or an object like a tree, you get reimbursement for the same provided you are at fault. However, in the event of mechanical breakdown or damage due to normal wear and tear of your car, you will receive no reimbursement.
- The comprehensive coverage will offer protection from any damage caused other than collision, which includes theft, and damage caused by falling rocks, trees, unexpected hazards, flood, and fire.
What are the different auto insurance policies that are frequently necessary?
Many states in the United States require that you must possess the following insurance coverage. These are as follows-
- Uninsured motorist coverage
This type of reimbursement is extended when an accident takes place, the cause of which is a motorist that is not insured. Hit-and-run case also qualifies for this kind of coverage. Some vehicle owners also buy underinsured motorist coverage.
- Medical payments (PIP or Personal Injury Protection)
This type of auto insurance coverage offers compensation for expenses, the proceeds of which go to you or the passengers that were present in your vehicle.
Regardless of the type of auto insurance coverage, you are opting for; make sure you buy the policy from a reliable insurance carrier.