What Is Included in a Standard Car Insurance Policy?
Most states require drivers to maintain auto insurance on all registered private passenger automobiles. Consumers are often confused about the provisions offered under a standard insurance policy. There are various coverages available. Many are optional and may be purchased a la carte.
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Bodily Injury Coverage
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Bodily injury coverage is a part of liability insurance. It compensates third parties who are injured in accidents when you are at fault.
Property Damage Coverage
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Property damage coverage is a part of automotive liability insurance. It is used to repair or replace vehicles and other property that are damaged due to your negligence.
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Uninsured/Under-insured Motorist Coverage
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Uninsured motorist property damage and liability coverage are optional coverages in most states. They are used to pay for your injuries and property damages when a party who doesn't have his or her own coverage damages your vehicle. Under-insured motorist coverage provides compensation to you when the at-fault party doesn't have enough coverage to pay for your damages.
Comprehensive Coverage
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Comprehensive coverage (or other-than-collision insurance) is optional in most states. It pays theft, weather damage, riots, fire, vandalism or other non-collision related damages occur.
Collision Coverage
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Collision coverage is optional in most states. It provides compensation to you when your vehicle is damaged in a covered accident. This coverage applies regardless of who's at fault.
Other Optional Coverages
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Other coverages may include roadside assistance and rental reimbursement.
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References
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