Auto Insurance Coverage Guide

Auto Insurance Coverage Guide

If you are shopping for car insurance you might get a little confused about the jargon they use. Here are fleeting explanations of the kind of coverages you will find in your car policies.

  • Collision – This covers the damage done to your car up to the book value. There is a deductible, which is the money you would have ot pay before your insurance takes over. The lower your deductible the higher your premiums and the higher your deductible the lower your premiums. If you get a loan to buy your car your bank will probably require collision insurance.
  • character damage – This coverage will pay if your car causes damage to character in an accident. If you slam into a car this coverage will theortically pay for the other guys damage.
  • Bodily Injury – Suppose you injure or kill someone in a traffic accident. This covers a part or all of any injury or death claims against you.
  • Comprehensive – Suppose there is a bad storm and a tree falls on and demolishes your car. This coverage will pay for such an event. It also covers vandalism, flood, theft, fire and other non accident related causes.
  • Medical payments – This insurance will cover medical payments for you and the occupants in your means. In no fault states such as Florida car insurance companies will make payments for your bodily injury claims in spite of of who was responsible for the accident. However, the insurance carrier of the person at fault will cover damage done to yoru car.
  • Uninsured/under insured protection – This will cover you and your passengers if injuries occur at the hands of someone who is under insured or who has no insurance. Also, if you get in an accident where the other party runs off then this insurance will kick in to pay for things.

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