July 23, 2011

Three Things You Must Have In Your Auto Insurance Policy

Car insurance is a necessary part of life for drivers in most states. The states have decided that certain forms of auto insurance coverage are necessary to drive legally. Liability coverage is the major part of an insurance policy that is required for driving. Other types of coverage are recommended, but not required by law to drive. Liability coverage has three different parts that all have minimum coverage amounts that vary by state. Other types of coverage can include no-fault insurance, full coverage and other more minor add-ons. The types of coverage that have state minimums are bodily injury coverage per person and property damage per accident.

Bodily injury coverage represents two of the main three parts of liability insurance coverage. The first aspect is the maximum amount an insurance company will pay out for one person injured in a car accident. This is important to have because medical expenses can cost quite a bit after a collision. The second part of bodily injury coverage is the amount of money your insurance company will pay out per accident for injuries. If more than one person is injured in an accident, the persons in question will have a set amount of money at their disposal for medical bills from the insurer and the rest would be left to the driver to pay.

The third part of your insurance policy that is required is property damage liability. This part of the policy deals with damage to vehicles or anything else that may be damaged in the event of a collision. The driver that is found at fault for an accident is responsible for the repairs and medical expenses of the other driver, so property damage is very important to have on your policy. Other parts of your auto insurance coverage are not legally required, but are still important. Many people choose to purchase full coverage for their car because not all drivers have insurance and they want other cars to be covered as well.

Full coverage will cover both vehicles involved in the collision. If you cause a car accident and have full coverage, your medical bills and repair expenses will be covered by your insurance company. If a driver without insurance causes an accident with you, your car and expenses are taken care of as well. It is important to understand the different types of auto insurance before making a decision on what type of policy to purchase. The minimum coverage is liability insurance only, and that type of insurance policy covers the least expenses. Speak with your insurance agent about what plan is recommended. Quotes for auto insurance can be found online and agents can answer any questions you have.