Matt Domian : I am having a problem understanding what are the coverages for auto insurance policy? If I do not know the coverages how can I compare auto insurance quotes or review auto insurance coverage ?

Response : Matt, this is a very good question. Let me explain the basic coverages and then I will give you an idea as to what to compare. A  basic auto insurance policy is made up of five different kinds of coverage:

  1. Bodily Injury Liability
  2. Property Damage Liability
  3. Medical Payments Coverage or Personal Injury Protection
  4. Uninsured & Under insured Motorist Coverage
  5. Physical Damage Coverage (Collision and Comprehensive)

Depending on the state where you live, you will find difference as to what is the legally required minimum coverage that you need.

All states require that you have some form of liability insurance when operating a motor vehicle. The basic insurance policy covers Bodily Injury Liability and Property Damage Liability. These coverages provide protection if you are found legally responsible for the injury or death of another person resulting from a car accident. Minimum auto insurance policy coverage amounts vary from state to state.

Medical Payments (or “Med Pay”) is an optional coverage that covers medical expenses for you and your passengers if injured in an accident (regardless of fault). Some states require that you carry Personal Injury Protection (a broader form of Med Pay that may include income replacement and disability benefits). Like Bodily Injury Liability, the amount of Med Pay you can purchase also varies from state to state.

Physical Damage Coverage, which is also optional, includes Collision and Comprehensive coverage. Basically, these two coverages protect your own vehicle from fire, theft (including contents), vandalism, or an upset with another vehicle or object – how much or how little you get depends on the value of what you’ve got.

Uninsured & Underinsured Motorist Coverage protects you and your passengers from people driving around with little or no insurance (or hit-and-run motorists). This coverage is required in many states.

Now let me tell you what to companre- first you will compare the coverages offered by the different companies for the same limits and compare the auto insurance rates and final premium charged by each one of them. Once, you have done this compare the other benefits given by each one of them – any additional coverages or services like road service, any electronic monitoring device for free. Last but not least compare the service reputation of the inusrance company. Many people worry about the stability and economic standing of the insurance company, however, this should not be a concern for the customer since the insurance regulatory bodies take care of this. Review auto insurance coverage and choice the right option for yourself.

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Filed under: Car Insurance ComparisionReview Car Insurance Coverage

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