Types of coverages associated with Auto Insurance

Types of coverages associated with Auto Insurance
Types of coverages associated with Auto Insurance

If we are looking to buy a new vehicle or for auto policy then we should be aware of the types of coverage available. If we met with a vehicle accident then insurance coverages protect us, our passengers, and our vehicle.

Auto liability coverage, uninsured and underinsured motorist coverage, comprehensive coverage, collision coverage, medical payments coverage, and personal injury protection are six popular vehicle insurance coverage options. Some of these coverages are required in some states, while others are optional. Understanding what is required in your state and what each type of assistance covers can assist you in selecting the best coverage for your needs.

COVERAGE FOR UNINSURED AND UNDERINSURED MOTORISTS:

If we are hit by a driver who doesn’t have insurance then uninsured motorist coverage helps us with medical claims or in some states vehicle repair is also provided.
If we are hit by an underinsured driver that means they have auto insurance but not sufficient liability limits to cover the medical bills so here underinsured motorist’s coverage helps us.

COVERAGE FOR LIABILITY: In most of the states liability coverage is required. Drivers are required to purchase at least a minimum amount of liability coverage. There are two parts to liability coverage:

  • Property damage liability insurance can assist cover the costs of causing damage to another person’s property while driving.
  • If you cause an accident, bodily injury liability may help pay for expenditures linked to another person’s injuries.

COMPREHENSIVE COVERAGE: This type of coverage covers the car damage caused by things like theft, damage, fire. Comprehensive coverage may assist in the repair or replacement of your vehicle if it is damaged by a covered risk (up to the vehicle’s real cash value). A deductible is an amount you must pay out of pocket before your insurer reimburses you for a covered claim. Comprehensive coverage is usually voluntary, but if you’re leasing or financing your vehicle, your lender may mandate it.

COLLISION COVERAGE: Collision coverage may assist pay for repairs or replacement of your automobile if you’re in an accident with another vehicle or if you collide with an object such as a fence (up to its actual cash value and minus your deductible). Collision coverage is usually an add-on. However, your vehicle’s leaseholder or lender may need it.

COVERAGE FOR MEDICAL PAYMENTS: Medical payments coverage may assist pay for costs associated with injuries if you, your passengers, or family members who are driving the insured car are hurt in an accident. Hospital visits, surgery, X-rays, and other expenses may be covered. In some states, medical payments coverage is obligatory, while in others, it is optional.

PROTECTION FROM PERSONAL INJURY: Only a few states offer personal injury protection. Personal injury protection, like medical payments coverage, may assist to pay for medical expenditures incurred as a result of an accident. In addition, personal injury protection may assist in paying other costs incurred as a result of your injuries, such as child care or missed wages. In some states, personal injury protection is mandatory, whereas in others when it is offered, it is voluntary.

Webner Solutions is a Software Development company focused on developing Insurance Agency Management Systems, Learning Management Systems and Salesforce apps. Contact us at dev@webners.com for your Insurance, eLearning and Salesforce applications.

Originally published at https://blog.webnersolutions.com on February 23, 2022.

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Webner Solutions

Webner Solutions

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Our team in Salesforce is very strong, with in-depth knowledge of Salesforce classic and Lightning development as well as the Service cloud.