What an Auto Policy Includes

Though coverages will vary by insurer, most auto policies include certain basic coverages. Here is an explanation of the most common coverages in a basic auto policy.

Liability Protection

The liability portion of your policy is usually what is required by law. Most states require certain levels of liability coverage to drive legally, so be sure to include these coverages when applying for auto insurance rates. Liability coverage is usually broken down into bodily injury liability and property damage liability coverage. Bodily injury liability helps protect you if you harm or kill someone while operating your vehicle. Property damage liability protects you if your vehicle damages someone else's property. In both cases, liability protection will provide for your legal defense if you are sued as a result of an accident and will protect you from any judgments against you. Make sure your auto insurance rates include enough of this coverage to insulate your assets from a lawsuit. If you have any questions, please check out our insurance Frequently Asked Questions page.

Personal Injury

This will help pay for the medical bills of the injured driver and passengers of your vehicle. If you have adequate health insurance, you may want to exclude this coverage from your auto insurance rates.

Uninsured/Underinsured Driver

This coverage will pay for your injuries and, depending on the laws of your state, damages caused by an uninsured or underinsured driver in an accident in which you are not at fault. This is important to include in your auto insurance rates, as the number of uninsured drivers is on the rise.

Collision

Collision coverage will pay to repair or replace your vehicle in the event of a covered accident. The insurance company will only reimburse you for up to the cash value of your vehicle at the time of the accident. Thus, if your car has little or no cash value, you can lower your auto insurance rates by eliminating this coverage.

Comprehensive

Comprehensive coverages protects you from damage resulting to your vehicle from non-accident-related incidents. For example, theft, vandalism, fire, and weather damage are usually covered events.