Important Auto Insurance Coverages

When you browse through your auto policy, you may see certain auto insurance coverages and wonder exactly what they are and why they’re there. Your agent should explain all of these to you, but we can clarify some of the important ones for you so you are prepared for the policy review.

Types of Auto Insurance Coverages:

Collision Coverage

This is the part of your policy that covers your car in the event you damage the car itself somehow. This would be the result of an accident with a fixed or moving object like another car, a curb, a house, a guard rail, etc.

Comprehensive Coverage

This coverage also protects your car, but in the event that something else damages your car, that is not a fixed, or moving object. For example, theft, a rock that cracks your windshield while you’re driving on the highway, an animal you might hit, and so on.

Property Damage

Suppose you damage someone’s car in an accident, or a guard rail, house, or some other property that belongs to someone else. This is the part of your policy that compensates the other person for that damage.

Bodily Injury Liability

This coverage protects your financial interest in the event you injure another party in an accident. This is the part of your policy that pays that other party for their medical bills and related expenses. Due to the high cost of medical care, it’s dangerous to carry liability limits that are too low. This is something an experienced agent should help you with.

Un-insured & Under-insured Liability

This coverage pays you in the event that you are injured by another party and that other party was either unidentified or they weren’t carrying a high enough limit of Bodily Injury Liability to cover your expenses. This is also a very important part of your auto policy because you have zero control over how much insurance other people are driving around with.

Auto Insurance Coverages Recap

Truthfully, auto policies protect more than just your car. A car is replaceable, people are not. An auto policy helps with medical bills as well. We think it is a super important policy to have to not only protect your car but help with medical expenses.

There is more that goes into an auto policy, but we will save that for another day. If you have any questions at all, our experienced team is always here to help in any way they can. Feel free to email us at team@thamsagency.com with any and all of your questions.