What Are The Different Types Of Auto Insurance Coverage?
Auto insurance protects an individual against financial loss in the event of an accident or theft. Follmer Insurance Services provides auto insurance in Ann Arbor, South Lyon, Howell, Pinckney, Brighton, and surrounding areas.
There are several common types of coverage that auto insurance offers:
- Liability Coverage: This is the most basic type of auto insurance coverage and is typically required by law in most states. Liability coverage helps pay for damages and injuries that you cause to others in an accident. It’s usually divided into two parts:
- Bodily Injury Liability: This covers medical expenses, lost wages, and legal fees for people injured or killed in an accident you’re responsible for.
- Property Damage Liability: Pays for repairs to other people’s property, such as vehicles or buildings, that you damage in an accident.
- Collision Coverage: This type of coverage helps pay for repairs to your vehicle if it’s damaged in a collision with another vehicle or object, regardless of who is at fault. Collision coverage typically has a deductible, which is the amount you’ll pay out of pocket before your insurance kicks in.
- Comprehensive Coverage: Comprehensive coverage helps pay for damage to your vehicle that is not caused by a collision. This includes damage from events such as theft, vandalism, fire, hail, floods, and falling objects. Like collision coverage, comprehensive coverage usually has a deductible.
- Personal Injury Protection (PIP): Also known as “no-fault” insurance, PIP covers medical expenses and lost wages for you and your passengers, regardless of who is at fault in an accident. PIP is required in some states and optional in others.
- Uninsured/Underinsured Motorist Coverage: This coverage helps protect you if you’re involved in an accident with a driver who either doesn’t have insurance or doesn’t have enough insurance to cover your damages. It typically includes both bodily injury and property damage coverage.
- Medical Payments Coverage: MedPay, as it’s often called, helps pay for medical expenses for you and your passengers if you’re injured in an accident, regardless of who is at fault. It can also cover funeral expenses in the event of a fatal accident.
Understanding these different types of auto insurance coverage can help you choose the right policy for your needs and budget. It’s important to review your coverage options carefully and consider factors such as your driving habits, the value of your vehicle, and state requirements when selecting coverage limits.
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