Types of Coverage

It is important to know what types of coverage is available for automobile insurance policies so you do not wind up paying for extra coverage you do not need. Below is a list of most coverages available and a description of what they are.

GENERAL LIABILITY COVERAGE:    This is the base of any insurance plan. This is normally the only required coverage you need to drive legally in most states (financing companies require liability and comp and collision if you are financing a car). Liability covers the damage done to others if you get into an accident and are at fault. This covers their property damage and medical. This can be broken down into 2 parts, bodily injury liability and property damage liability, but is most often put on a policy as one. Most insurance companies won't sell one without the other.

COMPREHENSIVE COVERAGE (Comp):    Comp coverage covers anything that happens to your car outside of a collision. It covers break-ins, theft, fire, natural disasters, vandalism, riots, floods, or accidents other than collisions such as hitting something in the road (animal, tire, wood, or anything else that may have ended up in the road). When you are financing a car they will require this and collision as well as general liability.

COLLISION COVERAGE:    Collision coverage covers any damage done to your car in the event of a collision with another car or a permanent object such as a pole, fence, or building.

MEDICAL PAYMENTS COVERAGE:    This covers medical expenses up to a certain amount for you and any passengers in your car in the event of an accident whether you are at fault or not.

PERSONAL INJURY COVERAGE:    This generally covers you, your passengers, and any pedestrians that may have been involved in your accident no matter who was at fault. It generally pays for just about everything medically involved. Things like medical bills, compensation for missing work, and funeral costs if necessary. This will always have a definite range of monies to be paid out and will not exceed those even if the medical bills do.

PROPERTY DAMAGE LIABILITY COVERAGE:    See General Liability.

BODILY INJURY LIABILITY COVERAGE:    See General Liability.

UNINSURED MOTORIST COVERAGE:    This coverage was created to make sure that you and your passengers are taken care in the event of an accident in which you were not at fault but the at fault party has no insurance. It covers Property Damage Liability and Bodily Injury Liability. It will have a set amount of payable and will not exceed that.

UNDERINSURED MOTORIST COVERAGE:    This coverage is identical to Uninsured motorist coverage except that it will have a lower payable as it covers the excess amount that is not covered by an at fault party with poor insurance. Insurance policies can be written for very small amounts of payables and these policies may not cover all the medical expenses or property damage costs. This is where Underinsured Motorist coverage would step in.

EXTENDED TRANSPORTATION COVERAGE:    This covers you rental car expenses if your car needs to be repaired and will be down for longer than a certain amount of time. The time limits and rate of pay per day for the rental car are all outlined in the different policies and are negotiable.

TOWING COVERAGE:    This covers the towing for your car to be towed off the road and to your desired location. There is a maximum they will pay so be aware of how much that amount is or you will end up paying the extra yourself. This coverage is most often lumped together with Labor Coverage.

LABOR COVERAGE:    This covers roadside labor to your car if it does not require being towed. This is most often lumped together with Towing Coverage.