auto insurance coverage
Auto Insurance Coverage
If you had to buy each of the types of auto insurance coverage as a separate
policy, you'd probably be more careful about making sure the protection fit
your needs. Having everything in one policy makes it too easy to ignore the
details. A brief summary of the major types of auto insurance coverage may help
you focus on your specific needs.
- Bodily injury liability - Pays when an insured person is legally
liable for bodily injury or death caused by your vehicle or your operation
of most non-owned vehicles. This coverage also pays for your legal defense
if you are sued.
- Property damage liability - Pays when an insured person is legally
liable for damage to the property of others caused by your vehicle your operation
of most non-owned vehicles. This coverage also pays for your legal defense
costs if you are sued.
- Medical payments coverage - Pays certain medical and funeral expenses
resulting from a motor vehicle accident. This coverage protects anyone occupying
your vehicle. It also covers you and relatives who reside in your household
while in other vehicles or if struck as a pedestrian. These benefits are payable
without regard to fault. This coverage may not be available in states that
require Personal Injury Protection Benefits.
- Underinsured motorist bodily injury coverage - Protects you, your
resident relatives, and occupants of a covered vehicle if any of these insured
sustain bodily injury, including any resulting death, in an accident in which
the owner or operator of a motor vehicle who is legally liable does not have
enough insurance.
- Uninsured motorist property damage coverage - Available in some states,
usually as an alternative to Collision Coverage. This coverage pays you for
damage to the covered vehicle that has been sustained in an accident in which
the owner or operator of a motor vehicle who is legally liable does not have
insurance. In some states, it may also pay you for damage to personal property
in the covered vehicle at the time of an accident. This coverage is not available
in all states.
- Underinsured motorist property damage coverage - This coverage pays
you for damage to the covered vehicle that has been sustained in an accident
in which the owner or operator of a motor vehicle who is legally liable is
an underinsured motorist. This coverage is available in only a limited number
of states.
- Comprehensive - Pays for loss or damage to your covered vehicle caused
by any event other than collision. This includes damages due to events such
as fire, theft, windstorm, flood, and vandalism. Most auto insurers will also
pay transportation and loss of use expenses under this coverage if your motor
vehicle is stolen.
- Collision - Pays for loss to your covered vehicle when it collides
with another object or overturns. Most auto insurers will also pay for a collision
loss to any non-owned vehicle, or to a vehicle you have rented other than
a vehicle rented for use in connection with your business or employment, while
that vehicle is in your custody, or while you are operating it.
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