Typical car insurance has six parts, some required, some optional, but because each piece is purchased separately, you can decide which coverage is best for you and you want to buy. These are the six coverages Bodily Damage Liability Coverage.
When the insured driver causes physical damage to third parties, this coverage comes into effect. This means that both you and your family members who are included in your auto insurance policy receive this coverage, even if you are driving someone else’s car and not your own.
It is essential as a driver that you have sufficient liability insurance coverage because if you were involved in a severe accident, you could be sued for a substantial sum of money. That is, you should consider obtaining this type of protection above the minimum limits required by the state to protect your assets – such as the house and savings – against lawsuits.
Coverage for Medical Expenses or Personal Injury Protection or Personal Injury Protection (PIP)
The insurance that the policyholder pays for medical expenses is caused to the people in the car (driver and passengers). In general, this coverage includes medical costs for treatment, hospitalization, fees generated by the damages suffered in the accident, and services needed by the people affected in an accident. It can also pay for funeral costs.
Third-Party Property Damage Civil Liability Coverage
That is, although it is generally damage caused to another person’s car, it also includes other types of property such as poles, buildings, or damage caused to public roads and other structures against which you could collide.
Collision or crash coverage
The portion of your policy covers damage to your vehicle when it collides with another car or structure (such as a utility pole) or if it rolls over. Generally, this part of the insurance has an associated deductible that you choose, which can be between $250 and $1,000; And the higher your deductible, the more you’ll reduce the cost of your annual policy. Even if you’re at fault for the crash, this coverage will pay for the cost of repairing your vehicle, minus the deductible, of course.
If the crash were not your fault, the insurance company would try to get the other party’s insurance to pay for the cost of repairing your vehicle. If they win the lawsuit against the other insurance company, then they will also reimburse you for the portion of the deductible that you must pay to have your car repaired.
Extensive coverage or against other risks ( Comprehensive in English)
The portion of the insurance reimburses you for expenses in the event of losses other than collisions. In case of theft, fire, earthquake, explosion, flood, hurricanes, vandalism, street disturbances, and even impact on the road against animals such as birds, deer, or cattle.
This part of the coverage is quite extensive and carries a deductible that can be increased from $100 to $300 or even more if you decide that it is in your best interest at the price of your insurance and your vehicle.
It can also compensate you for the cost of replacing your windshield if it breaks or cracks. Some companies offer windshield coverage with or without a deductible.
State law does not require you to obtain Collision or Comprehensive coverage, but if you are financing your vehicle, the lender will insist that you have this type of insurance until you have paid off the car’s loan.
Uninsured motorist coverage
This coverage will reimburse you, your family members, or a driver authorized by you for expenses incurred after a hit-and-run collision with an uninsured motorist.
It is also used when the insurance of the party at fault for the accident does not fully cover the damages incurred. And it will even cover your medical expenses if you are the victim of an accident as a pedestrian.
