The basics of auto insurance

Insurance policies and laws vary from state to state. Despite the fact that different states have specific auto insurance commands, the majority of car policies consist of six basic types of coverage as explained by auto insurance experts, Burlington, NC, Don Allred Insurance:

Body injury liability – This liability coverage applies to injuries caused to the policyholder, the designated driver and family members listed on the policy. It is therefore advisable to have enough liability insurance, more than the state required minimum.

Personal injury protection – This covers treatment and medical payments of injuries caused to the passengers and driver of the policyholder.

Property damage liability – This covers the damage you the driver or someone driving the vehicle cause to another person’s property which can be another car, building, and fence or lamp posts.

Collision – This coverage pays for damages caused by a collision with another car, object or flipping over. Usually, it’s sold with a separate deductible and in case you are at fault, the collision covers the cost of repair less the deductible and if you are not at fault you get reimbursed the deductible amount too.

Comprehensive – Comprehensive coverage reimburses the policyholder loss caused by something else other than collision. This includes theft or events such as fire, explosions, floods, vandalism and falling objects. It is also sold with a separate deductible although in other cases, a glass portion is usually offered.

Underinsured and Insured auto coverage – This auto coverage reimburses a designated driver, a member of your family or the policyholder himself on an event where you are hit by an insured driver or a driver whose insurance is insufficient to pay for your total loss. In case you are struck by an underinsured or uninsured motorist or you are a victim of a hit and run, this coverage also offers protection to bother the driver or pedestrian.

For specific policy information in your state, it’s important to contact your state insurance department or licensed local insurance agent.