However, being a car owner means you have got some important choices to make. It is tantalizing to ask from your agent about the least expensive policy. Of course, you have lots of other expenses as well to cover after all you are a car owner now. When you absolutely and exactly get that what each and every part of your auto policy covers, you can easily decide that cheaper is not essentially better. Imagine it: If your very first and your dream car was badly damaged in an accident, or you get seriously injured or injured someone, a few dollars of insurance coverage every month can be then prove to be the money well and best spent.
We are sharing below some of the common coverage which you can consider for your auto policy.
Coverage which Help in Paying for Damage You Cause
There are two kinds of liability coverage.
Bodily injury liability: If somebody injured as a consequence of an auto accident which you have caused, this coverage can help you by paying for your legal fees, the person's medical bills & lost of other wages. This coverage includes two different limits: one of that applies to each and every injured person ($60,000, for instance) & other one applies to each accident ($99,000, for instance).
Property damage liability: If you have damaged the property of some other person, like garage door or fence, with your vehicle, this coverage can help you in protecting yourself. The property damage coverage help to reimburse the other party for their losses, so you do not have to pay for them out of your own wallet.
Coverage which Help you in Protecting Yourself if You are Hurt
PIP (Personal Injury Protection): If you are injured in some car accident, this coverage can help you in paying your health insurance deductible (if you've one) and medical costs too which exceed your health insurance limits. It can also help you in paying for your lost wages & "loss of services," like dropping your kids at school or picking them up, while you recover. Worst-case scenario: this coverage also helps in covering your funeral expenses. However, it should be kept in the mind that this is not available in all states.
Medical payments: Like Personal Injury Protection, this coverage also helps in paying your medical bills related to auto vehicle accident. It also extends to your passengers & a family member who was driving the vehicle when the incidence of accident took place. Furthermore, if you or your any family member is injured in some other car accident or you or he is injured as a pedestrian, this coverage even then helps in paying for medical expenses.
Coverage which Protects You From Drivers who are without Insurance
Uninsured motorist: This coverage helps you in protecting yourself if you are hit by a driver with no auto insurance or whose policy limits are very low to cover full costs of the accident. It cam also help you in paying your medical bills & — depending on insurance laws of your state — possibly for any damage to your vehicle.
Coverage which protects your Vehicle
Collision: If you want to repair or replace your car after a collision with another car or some other object, this coverage helps you in covering the costs.
Comprehensive: This coverage helps in paying for damage to your car which is not related to an auto accident. Example: damage by any animal (particularly cattle), fire or any falling object, theft.
GAP (Guaranteed Asset Protection): If your vehicle is damaged in an accident or it is stolen, your insurance company will typically pay you fair-market value for your vehicle. However, if you yet owe a financial institution more than the vehicle is worth, this coverage helps to reimburse you for the cost difference.