Car insurance may seem complicated, but you can simplify things by knowing that different types of insurance have evolved to cover the many different types of damage that can result from operating an automobile.
Your Auto Insurance policy includes several different types of coverage. Some will have a deductible (the amount you will pay before the insurance company pays), and some will limit the amount of coverage you receive. Your policy will normally include these coverages:
- Bodily Injury Liability covers medical costs for anyone injured or killed in a vehicle-related accident in which you are at fault. It also provides for the cost of legal representation if a lawsuit is brought against you because of an accident.
- Property Damage Liability is similar to bodily injury liability insurance, except that it provides coverage for damage to someone else’s property caused by your vehicle. This coverage also provides for legal representation in the event of a lawsuit being brought against you.
- Medical Payments, No-Fault or Personal Injury Protection Coverage pays for medical costs for you and passengers in your vehicle if you are involved in an accident.
- Uninsured or Underinsured Motorists Coverage will cover medical expenses and the costs of repairing or replacing your vehicle if you’re involved in an accident which is the fault of a motorist who has no or insufficient insurance coverage.
- Comprehensive Physical Damage Coverage pays for repairs to your vehicle for damage not caused by collision. This might include broken glass, fire, theft damage, or flood damage.
- Collision Coverage pays for repair or replacement of your vehicle when it is damaged in a collision either with another vehicle or a stationary object.
- Rental Reimbursement Coverage will pay a flat amount toward the cost of renting a vehicle if yours is damaged and while it is being repaired or replaced.
Some coverages are mandated by state law in order for you to register and drive your vehicle on public roads and property. Some auto insurance coverages require that you pay a deductible – a set amount – before the insurance pays. By choosing a higher deductible amount, you may be able to reduce the amount of the premiums you pay for that coverage. You should decide on a deductible amount you feel you could comfortably pay based on your financial status.
Your Schultheis agent will be able to advise you which coverages and coverage amounts are appropriate for your situation. Your agent will also review coverage from several companies to assure that you get the best auto insurance policy possible at the lowest premium cost.