You sign up for auto insurance, pay your premiums on time and take for granted that your auto insurance is fully protecting both you and your vehicle. But is it really?
You may be surprised to find that many auto insurance policies are less than thorough, thereby leaving you inadequately insured if you become involved in an auto accident. Many individuals choose less-adequate levels of auto insurance to save money, but the reality is that you could lose tremendously more than the few dollars it would cost you monthly for a better policy should you have extensive medical bills and auto damage.
A comprehensive auto insurance policy should be comprised of several, key segments, including:
- Liability - Liability is the part of your auto insurance policy that is required by your state. Without it, and you’d be breaking the law. Liability covers the cost of property damage or bodily injury to others caused by you in an auto accident.
- Collision - Collision is an important part of any comprehensive auto insurance policy, as it covers the cost of your auto repairs should you become involved in an auto accident. Collision may also cover the cost of repairs if your car has been vandalized or burned, as well.
- Uninsured motorist - If you are hit by another driver that is uninsured your auto insurance will step in and cover your bodily injuries and auto damage, provided you are covered by the uninsured motorist section of your auto insurance policy.
- Personal injury protection - If you or your passengers have medical expenses and lost wages as a result of an accident, the personal injury protection part of your auto insurance will cover these expenses.
- Medical payments - The medical payments segment of your auto insurance policy will pay your medical bills immediately, and will also cover your medical bills if your or anyone in your household is in any type of accident involving a vehicle.
- No-fault insurance - No-fault insurance, which is required in some states, is designed to cover all expenses in an accident, regardless of which driver was at fault.
Tags: auto accident, auto insurance, auto insurance policies, auto insurance premiums, collision insurance, comprehensive auto insurance policy, liability insurance, no-fault insurance, uninsured motorist