What is Car Insurance?
Car insurance is insurance that provides protection against losses incurred during a car accident.
Car insurance coverage is packaged into different coverage types.
The most common types of car insurance are:
- Bodily injury liability
Bodily injury liability covers other people's bodily injuries or death for which you are responsible. Bodily injury liability also provides for a legal defense if another party in the accident files a lawsuit against you. The injured party may file a claim for payment of medical bills, loss of income or pain and suffering.
Bodily injury liability insurance is important because if you are involved in a serious accident, you will probably need enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily injury liability insurance covers injury to people, not your vehicle. Bodily Injury Liability insurance does NOT cover you or other people on your policy.
- Property damage liability
Property damage liability covers you if your car damages someone else's property. Usually it is the car that is damaged, but it can also be a fence, house, or any other type of property. Property damage liability also provides you with legal defense if another party files a lawsuit against you.
- Comp and Collision
Comp covers your vehicle, and sometimes other vehicles you may be driving for losses resulting from incidents other than collision. Comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire, or animals. Comprehensive insurance pays to fix your vehicle less the amount of the deductible.
Collision covers damage to your car when your car hits, or is hit by, another vehicle, or other object. Collision insurance pays to fix your vehicle less the amount of the deductible.
- Underinsured Motorist Property Damage
Underinsured Motorist Property Damage insurance pays for damage to your car, when the car is damaged by a person who who doesn't have enough insurance to pay for your damages.
- Uninsured Motorist Property Damage
Uninsured Motorist Property Damage insurance pays for damages to your car when the care is damage by a person who does not have auto insurance.
- Underinsured Motorist Bodily Injury
Underinsured Motorist Bodily Injury insurance covers you, the insured members of your household and your passengers for injuries, damages or death caused by a person who doesn't have enough insurance to cover your damages.
- Uninsured Motorist Bodily Injury
Uninsured Motorist Bodily Injury covers you, the insured members of your household and your passengers for bodily/personal injuries, damages or death caused by an at-fault uninsured or hit-and-run driver.