November 6, 2010

What Is Included In A General Auto Insurance Policy

A majority of states in the country only require drivers to carry minimum limits of liability insurance in order to drive a vehicle legally. There are other optional coverages that can also be purchased to cover financial losses from a car accident or other incident. An affordable car insurance quote can be obtained for a general auto insurance policy that includes several important coverages.

Liability insurance covers bodily injury to a third party if you are found to be responsible for an accident. Drivers in other vehicles, passengers and pedestrians are all included in this coverage. Liability also covers damages you cause to another person's vehicle or other personal property. If you lose control on an icy street and plow your vehicle into someone's house or fence, liability insurance will take care of the cost of repairs. There are usually minimum limits required, but it is recommended that you purchase more than the lowest limit.

Insurance can also be purchased to cover physical damages to your vehicle. Collision covers damages caused by a collision with another vehicle, object or person. Comprehensive insurance will cover damages caused by fire theft, vandalism or animal collision.

Another important coverage that is mandatory in some states yet optional in others is under/uninsured motorist coverage. This coverage will come into play if you are involved in an accident with someone who has inadequate coverage or no insurance coverage at all. This insurance will pay the difference between the insurance that the other party has and the minimum required limits of insurance. Otherwise, you may be stuck paying for damages out of your own pocket.

Personal injury protection (PIP) will pay for medical expenses, regardless of who is at fault for an accident. This insurance covers not only medical expenses but also loss of wages and funeral expenses. It can also pay for expenses related to household needs such as housekeeping or yard maintenance. Without this coverage, a person may have to turn to an individual health insurance policy, if they have one in place, to pay for medical treatments, hospital stays or surgeries. Often, a personal health insurance policy requires the insured person to pay a deductible, which may be difficult to do if he or she is injured and cannot make ends meet due to being out of work.

It is beneficial to review all available general auto insurance coverages when you get an affordable car insurance quote to ensure you purchase the right coverage for you. This will give you both financial protection and peace of mind if you need to make a claim. By understanding what coverages are included, you will reduce the chance of being faced with unexpected expenses.