What is included in auto insurance?

A typical auto insurance consists of six parts, some mandatory, some optional, but since each part is obtained separately, you can decide which coverage is the best for you and you want to buy. These are the six coverages Liability coverage for physical damage.

This coverage goes into effect when the insured driver causes physical damage to third parties. This means that you, as well as the members of your family that are included in your auto insurance policy, receive this coverage, even if you are driving someone else’s car and not your own.

It is important, as a driver, that you have sufficient liability insurance coverage, as if you were involved in a serious accident, you could be sued for a substantial sum of money. In other words, you should consider obtaining this type of protection above the minimum limits required by the state, to protect your assets – such as your home and savings – against lawsuits.

Coverage for Medical Expenses or Personal Injury Protection or Personal Injury Protection (PIP) *

It is the portion of the insurance that the policy holder pays for medical expenses incurred by the people in the car (driver and passengers). In general, this coverage includes medical expenses for treatment, hospitalization, fees generated by damages suffered in the accident, and services needed by the people affected in an accident. You can also pay for funeral costs.

Liability coverage for damage to the property of third parties

That is, although it is usually damage caused to someone else’s car, it also includes other types of property such as poles, buildings or damage caused to public roads and other structures that you could collide with.

Collision or collision coverage

It is the portion of your policy that covers damage to your vehicle when it collides with another vehicle or structure (such as a street light) or if it rolls over. Generally, this part of the insurance has an associated deductible that you choose, which can be between $ 250 and $ 1,000; And the higher your deductible, the more you reduce the cost of your annual policy. Even if you are responsible for the crash, this coverage will pay for the cost of repairing your vehicle, less the deductible, of course.

In the event that the collision was not your fault, the insurance company will try to make the insurance of the other party involved pay for the costs of repairing your vehicle. If they win the lawsuit against the other insurance company, then they will also reimburse you for the portion of the deductible that you must pay to have your car repaired.

Extensive coverage or other risks ( Comprehensive English)

It is the portion of the insurance that reimburses you for expenses in the event of losses other than collisions. That is, in the event of theft, fire, earthquake, explosion, flood, hurricanes, vandalism, street disturbances and even impact on the road against animals such as birds, deer or cattle.

This part of the coverage is quite extensive and also carries a deductible that can be increased from $ 100 to $ 300 or even more, if you decide that it favors the price of your insurance and in relation to your vehicle.

It can also compensate you for the cost of replacing your windshield if it breaks or cracks. Some companies offer windshield coverage with or without a deductible.

State law does not require you to obtain Collision or Comprenhensive coverage, but if you are financing your vehicle, the lender will insist that you have this type of insurance until they have finished paying off the loan. of the car.

Uninsured Motorist Coverage

This coverage will reimburse you, your family members, or a driver authorized by you, for expenses incurred after a hit-and-run with an uninsured motorist or a hit-and-run driver.

It is also used when the insurance of the party at fault in the accident does not fully cover the damages incurred. And it will even cover for your medical expenses, in the event that you are the victim of a hit as a pedestrian.

* Each state requires by law some type of insurance with its respective protection limits. The insurance industry recommends that the minimum protection for medical expenses be $ 100,000 per person and $ 300,000 per accident.

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