United States
United States
Before you buy auto owners insurance, it’s important you understand the type and level of coverage you are purchasing. A typical auto insurance policy provides the following categories of coverage:
Liability coverage provides you with protection in the event that you cause another person to be injured or damage another person’s property. This coverage is usually divided into two categories:
Bodily injury liability coverage - Pays for medical and legal costs related to the bodily injury or death of another person resulting from an accident for which you are at fault.
Property damage liability coverage - Pays for repair/replacement and legal costs related to the physical damage of another person’s property resulting from an accident for which you are at fault.
Personal injury coverage pays for reasonable and necessary medical expenses of the driver and passengers in your vehicle that arise as a result a covered accident, regardless of who is at fault.
Uninsured motorist coverage pays for repairs and medical expenses of you and your passengers arising from an accident caused by an uninsured driver (or a hit-and-run driver). Underinsured motorist coverage may also be included for situations when the at-fault driver does not have sufficient insurance coverage.
Comprehensive coverage pays for the loss or damage to your car due to theft, vandalism, fire, weather (hail, flood, etc.), and other covered perils. Comprehensive coverage only covers damage caused by an event other than a collision (although does normally cover collision with animals and passive objects, such as a tree or wall).
Collision coverage pays for the cost of repairing or replacing damage to your car when it hits, or is hit by, another vehicle or object.
Comprehensive coverage and collision coverage are often referred to as "physical damage coverage".
Please note that the actual coverage provided by your auto insurance policy may differ from that described above. Please read your policy carefully and talk with your insurance agent to determine your actual coverage.
In addition to the basic auto insurance coverages detailed above, the insurer may also offer:
Emergency road service coverage for towing and associated labor costs.
Rental car reimbursement (loss of use) coverage for rental car costs incurred while your car is being repaired.
Mechanical breakdown insurance.
