Auto Insurance 101

• Auto Insurance Basics

  When you buy an auto insurance policy, it is usually a comprehensive package of several different kinds of financial coverage to protect you in situations such as car accidents, auto theft and injury. Here are the details of the kinds of insurance that are usually included in an auto policy.

• 1. Property damage

  When you think of car insurance, you probably first consider it a way to pay for damage to another person’s car in the case you cause an accident. This kind of coverage is known as property damage liability, and it also includes protection for damage you cause to property that isn’t a car--such as buildings or homes.

• 2. Bodily Injury

  If you are involved in an auto accident with another driver and you are found to be at fault, you may end up being responsible for paying the medical expenses of anyone who is injured in the accident. Coverage for bodily injury liability would help you pay these expenses, as well as supplement the injured person’s or persons’ income in the event that they are unable to work due to their injuries. Bodily injury insurance may also coverage funeral costs in the case of a death due to an auto accident.

• 3. Personal Injury Protection

  Personal injury protection, sometimes referred to as PIP, is a way to cover your own expenses in case of bodily injury. This includes your medical services in association with an auto accident, replacement income if you cannot work after the accident or money spent on a funeral. PIP sometimes also applies to passengers or drivers of your car who are involved in an accident.

• 4. Collision Coverage

  Collision coverage simply pays for your own auto repair bills after you get into an accident, and it usually applies to your auto expenses whether you are at fault or not.

• 5. Uninsured Motorist Coverage

• 6. Comprehensive Coverage

  This kind of coverage is like a catch-all for incidents that sometimes occur when you own and drive an automobile. Included in comprehensive coverage is protection for situations like getting your car towed, having your car stolen or vandalized, sustaining damage due to hitting an animal or a cracked windshield and natural disasters such as floods, tornadoes and hail storms.