Auto insurance is an extremely important if you operate a vehicle. Auto insurance is used to protect you the individual or a business or organization from financial loss in regards to a motor vehicle. Financial loss can happen due to many reasons, and having auto insurance can cover your losses in a variety of ways. There are six major types of coverage's available through auto insurance companies, they are:
Liability for Property Damage
Liability for property damage is coverage against damage you or a person driving your vehicle with your permission does to someone else's property. Damages can include the other vehicle, utility poles, fences, buildings, homes, businesses, or almost any type of structure your vehicle comes into contact with.
Liability for Bodily Injury
Liability coverage for bodily injury is to pay for damages that you or someone given permission to operate your vehicle causes to another person. Because, bodily injury can be quite expensive, it is important to make sure that you and your family has enough of this type of coverage.
Collision
Collision coverage protects your vehicle from damages resulting from an accident (collision with another car, pot hole, car flipping over, etc). Collision coverage will pay for repairing your vehicle, or if your vehicle was totaled in the accident it will reimburse you for the value of the vehicle (subtracting deductible and in many cases other costs).
Comprehensive
Comprehensive coverage will protect you against losses from theft or other types of damages that are other than a collision, including fire, hail, vandalism, contact with animals, and acts of god (such as hurricanes, flooding, etc)
Medical/Personal Injury Protection (PIP)
Medical/PIP coverage pays for treatment when you are injured in a motor vehicle accident either when you are driving a vehicle or are a passenger in your own vehicle. Some policies include broader coverage such as rehabilitation costs, lost wages and even funeral costs.
Uninsured or Underinsured Motorist
Uninsured coverage will protect you from damages when a driver without insurance or a hit an run driver causes an accident with you, your family members or your vehicle.
Underinsured coverage can be useful in covering damages by an at fault driver that is underinsured or doesn't have sufficient resources to pay for your damages. For instance, this coverage can protect you if you are hit by a vehicle as a pedestrian.
It is important to note that the above types of coverage's can require separate fees and each type of coverage can have different deductibles.
