Components Of An Auto Insurance

Car insurance usually protects your vehicle against collision damage. However, each insurance policy offers unique coverage that you must understand before purchasing auto insurance. But, this shouldn't confuse you as all car insurance policies have essential components. Here are the significant components of vehicle insurance.

Liability Coverage

Liability coverage includes the following:

  • Bodily injury coverage. This covers the injuries you cause to another person due to a collision.
  • Property damage coverage. This covers damages you cause to another person's property, such as cars, fences, and buildings while driving.

Liability coverage is mandatory, and you need to buy the minimum coverage available to avoid legal problems. Your insurer should provide you with an auto insurance quote to help you determine the minimum liability coverage amount to pay.

Personal Injury Protection (PIP)

PIP coverage caters to the medical expenses you or your car's occupants incur after a collision, whether you're at fault or not. PIP has three major components:

  • Income loss. Income loss coverage is for losses due to car accident-related injury. For instance, if you develop a disability due to a collision and can't continue working your current job, this cover may compensate you.
  • Household expenses.PIP compensates you for basic household expenses you can't afford due to collision injuries.
  • Medical. This coverage pays for all medical services you get such as scans, X-rays, medication, hospital fees, and physical therapy.

PIP coverage terms vary across regions. So, engage your insurance firm to know the ideal personal injury protection policy to purchase.

Comprehensive Coverage

Comprehensive auto insurance protects your vehicle against damage that isn't due to a car collision. The damages could be due to floods, earthquakes, theft, fires, and impact from falling objects. While this coverage is optional, your lender may ask you to buy comprehensive insurance if you're servicing an auto loan, 

Collision Coverage

Collision coverage is for fixing car damages when you hit other vehicles or objects like fences. The insurance can cover car repair and replacement costs but isn't mandatory. Nonetheless, your car loan provider may ask you to get this insurance to protect their asset.

Medical Payment

Medical payment auto insurance caters to all medical expenses that you or your vehicle's occupants incur when treating injuries from auto accidents. The coverage stands whether you're liable for a collision or another motorist is liable.

The components of vehicle insurance include PIP, medical payment, comprehensive, collision, and liability coverage. Consider including these coverage options in your auto insurance policy to enjoy maximum protection for your vehicle.

If you have more questions, be sure to contact a local auto insurance company like The Lofrumento Agency, Inc.