19, July 2021

Coverage Components Under A Typical Car Insurance Policy

When the time comes to buy a new car or consider purchasing auto insurance, it is important to understand what type of coverage is available on car insurance policies. Car insurance coverage is meant to serve as a form of protection for you, the vehicle, and any passengers who were present if an accident occurred. Here are some coverage components that are included in typical car insurance policies.

Liability Coverage

In many states, auto liability coverage is compulsory. It is required by law for drivers to buy a certain amount of liability coverage. Typically, liability coverage has two components: property damage liability and bodily injury liability. Property damage liability covers the damage you may have caused another person’s property when driving, while bodily injury liability can help to cover the costs of the injuries you may have caused someone else during an accident.

Underinsured and Uninsured Motorist Coverage

In the case where you are involved in an accident with a driver who has no insurance, the uninsured motorist coverage can help cover damages to your vehicle, as well as your medical bills. If the driver who has caused the accident is underinsured, which means they have insurance, but the liability limits are insufficient to pay off your medical bills which have resulted from the accident, the underinsured motorist coverage can help. In some states, this coverage is mandatory while optional in other states.

Collision Coverage

If you collide with a fence or into someone else’s vehicle, collision coverage can help to cover the cost of car repair, and even car replacement. Usually, such coverage is optional, but may be required by your vehicle’s lender or leaseholder.

Comprehensive Coverage

If you or your vehicle is a victim of theft, vandalism, fire or hail, comprehensive coverage can help to cover the damage. As long as the peril is covered, the insurance can help to pay off vehicle repairs or vehicle replacement, up to the actual cash value of your vehicle. Comprehensive coverage has a deductible, which refers to the amount you will need to fork out yourself before the insurer reimburses you.

Medical Payments Coverage

This coverage can help to cover medical payments for a person who has been injured in an accident. Some of the covered costs include surgery, hospital consultations, X-ray scans, and more. In some states, medical payments coverage is mandatory.

Personal Protection Injury

Personal Protection Injury is similar to medical payments coverage in the sense that it can help to pay medical expenses after an accident has occurred. Furthermore, the personal injury protection can also help to cover other type of costs incurred due to the injuries resulted, like lost income or childcare expenses.

Are you thinking about purchasing car insurance for a vehicle that you have recently bought? K&N Brokerage partners with independent insurance agents and are able to help you find the best car insurance most suited for your vehicle.

Feel free to contact us to find out more about the services we offer today!