How much do you know about your auto insurance policy? Most people know they need auto insurance, but aren’t aware of what coverages their policy actually includes. Some people also aren’t aware of what their current coverage limits and deductibles are.
Auto insurance provides financial protection for certain events, such as an at fault accident, having your vehicle stolen, or hitting a deer. Your auto policy is made up of several different parts. Within these parts, there are many different deductible and coverage limit options for you to choose from. Most states require for you to legally carry some of these coverages, but not all. If you choose to only have the required state coverages, you are likely not properly covered.
- Physical damage coverage pays for damages to or theft of your car.
- Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
- Medical coverages pays for the cost of treating injuries.
- Towing and labor coverage provides coverage/reimbursement if your vehicle needs towing or for labor done at the site of disablement.
- Extended transportation coverage provides coverage for a rental car while your vehicle is being repaired during a covered loss.
There are also non-owners policies for people who have a drivers license and need liability coverage, but don’t currently own a car. If you choose to purchase a vehicle later and need to add physical damage coverage, your non-owners policy can easily be changed to fit your new coverage needs.