What Should An Auto Insurance Policy Cover

Your car is perhaps one of your most valuable possessions you have so it is imperative that you have plans on how to take good care of it – aside from doing some car maintenance.

Buying an automobile insurance policy is one important thing that you should consider when taking care of your car. However, finding the best auto insurance rates has always been a challenge for car owners. Aside from that, looking for the best auto insurance coverage is also a very important consideration.

In this article we are going to discuss about some important coverages that an auto insurance policy should have – aimed to make you become more knowledgeable, necessary when buying an automobile insurance policy.

So, what should an automobile insurance policy covers? Check some below.

Liability Coverages

When you are involved in an accident and when authority found you are liable, liability coverages can help in paying for bodily injury to others and for the damage to the property to others caused by the accident. Please note that these coverages are mandatory in almost every state.

Medical Payments Coverage

This coverage is intended to cover medical and funeral expenses incurred in a mobile accident – regardless of fault. It also covers injuries or damages sustained by passengers where your car is involved or when you are using other car (with permission) – that is in addition to injuries you or your family incur when you are pedestrians. This coverage is not mandatory in most states. Some states offer a more complex coverage called Personal Injury Protection coverage as an alternative to Medical Payments Coverage.

Comprehensive and Collision

This is to pay for physical damages to a covered vehicle caused by a collision with another object or vehicle. This coverage is just an option; however this is mandatory most especially by many auto lenders.

Uninsured and Underinsured Motorists Coverages

These coverages are designed to pay for bodily injury you or your passengers sustained as a result of car accident caused by another person who is legally liable for the accident, but who either has no liability insurance (uninsured) to pay for your injuries or when his automobile insurance policy coverage is inadequate (under-insured).

Other Than Collision

This pays for loss of or damage to a covered vehicle by theft, fire, vandalism, glass breakage or collision, This is optional, but is also required by most auto lenders.

Auto Loan/Lease Coverage

Also known as ‘gap’ coverage, an auto loan/lease is an optional coverage aimed to pays off any remaining loan or lease obligation you have on a vehicle that is a total loss – where the value of the vehicle is not more than your remaining financial obligation.

Above are some coverages that an automobile insurance policy should cover. There are more coverages aside from those above. You should be aware of those – for you to get the best auto insurance rates and coverages in town.