What is Basic Car Insurance?

Car insurance can be rather confusing, but it can also be expensive. Many people are not familiar with what they have to include on their insurance company by law and what the extras are. It is smart to understand what each component means.

Bodily Injury Liability

Bodily injury liability is part of a basic car insurance policy. This is the part of the policy that protects you from being sued if you are involved in an accident that injures someone else.

Personal Injury Protection

Another part of basic car insurance is personal injury protection. It covers lost wages, medical expenses, funeral expenses and similar details. This extends to the driver and any passengers.

Property Damage Liability

Property damage liability covers any damage you do to another person's property. This includes anyone that had your permission to drive your vehicle. This coverage also covers anything your car hits, including other buildings, fences, etc.

Collision

Collision covers you if you are involved in an accident with another car. You are able to decide the amount of your deductible with this portion of the policy. A higher deductible offers a lower premium and a lower deductible offers a higher premium. Collisions are covered regardless of fault.

Comprehensive

Comprehensive coverage reimburses for theft, fire, hail, floods, earthquakes and vandalism. You can choose your deductible with this portion, too, which will reflect in your premiums.

Uninsured and Underinsured Motorist Coverage

Uninsured and underinsured motorist coverage will cover you in the event you are in an accident with someone who doesn't have auto insurance. Underinsured coverage pays for your loss when the other driver doesn't have sufficient insurance to cover your losses.