Auto Insurance Coverage
Coverages are simply the kinds of auto insurance coverage that you have on your vehicle. Each type of auto insurance coverage will protect you in the case of a certain type of claim against you.
The auto insurance coverages fall into the following broad categories: Liability Auto Insurance, Car Insurance Medical, Auto Insurance - Collision, Comprehensive Car Insurance, Uninsured / Under-insured Drivers - Auto Insurance and Extra Car Insurance.
Liability - Auto InsuranceThere are two kinds of auto insurance liability coverage:
1. Auto Insurance - Bodily Injury Liability This auto insurance coverage protects you in case of an accident involving injuries to others. The auto insurance coverage will extend to you or family members named on the policy. This auto insurance coverage will also cover those same people when driving someone else's car (as long as it is with permission).
When do you need Bodily Injury Liability auto insurance? You've had an accident, it's your fault and someone got hurt.
State required minimum levels of auto insurance usually focus exclusively on bodily injury liability coverage. This is because they want to ensure that an innocent bystander who is hurt by you while driving will receive compensation. With this in mind, you'll generally want more than the required minimum auto insurance coverage - particularly if you have personal assets you want to protect.
In most cases (unless you are very wealthy) you shouldn't expect a claim or lawsuit against you for more than your auto insurance coverage unless the injuries sustained were very severe. But you have to be aware that it could happen and juries are quick to apply punitive settlements where injuries are severe. Therefore, buy a reasonable amount of auto liability insurance; keeping in mind your own circumstances as well as reasonable medical costs for an injury so that you are appropriately insured.
2. Auto Insurance - Property Damage Liability This auto insurance property liability coverage is for damage to other people's property caused by you (or your vehicle when someone else is driving with your permission).
In the vast majority of cases this damage will be to another car. However, this auto insurance property liability coverage will also pay for damage to public property (lamp posts, telephone poles) or other personal property like fences, buildings or other structures.
Keep a reasonable amount of auto insurance property liability coverage without over-doing it. You can make some calculations to determine what auto insurance you are comfortable carrying. What is the cost of a current 'high-end' car? You might consider enough auto coverage to be able to pay for repairs to an SUV, for instance. But also consider your own driving record. If you've been driving for 25 years and you've never had an accident you might be comfortable with a lower amount of auto insurance property liability coverage.
And keep in mind the cost. You are always balancing what you have to pay now in consideration of what you have in damages and/or claims if you have an accident. Remember that the auto insurance company is also playing those odds. They operate so that they end up with a profit regardless of the number of claims.
Don't forget to check out the reduce auto insurance cost, discount car insurance, car insurance medical, auto insurance collision, liability insurance, comprehensive car insurance, uninsured & underinsured, auto insurance cost, and how much insurance should I carry guides and click on the links above for auto insurance companies.