Auto Insurance Coverage Types Explained
Navigating the world of auto insurance can feel complicated. With so many different types of coverage available, it’s easy to wonder what you actually need. At Insurance Company Grandview Heights Ohio, we help drivers understand their options so they can choose a policy that offers the right protection without overpaying. This guide breaks down the most common types of auto insurance coverage to help you make an informed decision.
Liability Coverage: The Foundation of Your Policy
Liability coverage is the cornerstone of almost every auto insurance policy because most states legally require it. It protects you financially if you are at fault in an accident that causes injury to others or damage to their property.
Bodily Injury Liability (BI)
If you cause an accident that injures another person, Bodily Injury Liability helps pay for their medical expenses, lost wages, and legal fees if they sue you. It doesn’t cover your own injuries; that’s where other coverages come in.
Property Damage Liability (PD)
Property Damage Liability helps pay for repairs or replacement of another person’s property that you damage in an accident. This typically means the other driver’s car, but it can also cover things like fences, mailboxes, or buildings.
Coverage for Your Vehicle
While liability covers damage to others, you also need coverage to protect your own car. These options are often required if you have a loan or lease on your vehicle.
Collision Coverage
Collision coverage helps pay to repair or replace your car if it’s damaged in a collision with another vehicle or object, like a tree or a guardrail. It applies regardless of who is at fault. If your car is declared a total loss, collision coverage will pay out its actual cash value, minus your deductible.
Comprehensive Coverage
Comprehensive coverage, sometimes called “other than collision,” protects your car from damage caused by events other than a crash. This includes theft, vandalism, fire, hail, or hitting an animal. Like collision coverage, it pays for repairs or reimburses you for the car’s actual cash value, minus your deductible.
Coverage for You and Your Passengers
What happens if you or your passengers are injured in an accident? These coverages are designed to handle medical costs.
Medical Payments (MedPay)
Medical Payments coverage helps pay for medical expenses for you and your passengers after an accident, no matter who is at fault. It can cover costs like hospital visits, surgery, and X-rays. MedPay is not available in all states.
Personal Injury Protection (PIP)
Similar to MedPay, Personal Injury Protection helps cover your medical expenses after an accident. However, PIP often goes a step further by also covering lost wages and other non-medical costs. It is required in some states and optional in others.
Protecting Yourself from Uninsured Drivers
What if you’re in an accident caused by someone who doesn’t have insurance, or doesn’t have enough to cover your expenses?
Uninsured Motorist (UM) Coverage
Uninsured Motorist coverage protects you if you’re hit by a driver who has no auto insurance. It can help pay for your medical bills and, in some states, car repairs.
Underinsured Motorist (UIM) Coverage
Underinsured Motorist coverage kicks in when the at-fault driver has insurance, but their liability limits aren’t high enough to cover all of your medical expenses.
Find the Right Coverage for You
Understanding the different types of auto insurance is the first step toward building a policy that fits your life. Everyone’s needs are different, so it’s important to consider your budget, your vehicle’s value, and your risk tolerance when making a decision. If you’re ready to find the perfect plan, the team at Insurance Company Grandview Heights Ohio is here to help you secure the right protection for your journey.