Monday, July 14, 2008

What Does Your Car Insurance Cover?

Bodily Injury Liability- Your insurance covers the claims against you when you have an accident and somebody died or was injured.

Property Damage Liability- Your insurance covers the property damages you have incurred in a car accident. It’s a requirement for all states except three.

Medical Payments- Your insurance takes care of all charges when you are injured or any occupants of your car in an accident. This is optional in some states, and in others, medical payments is replaced by personal injury coverage.

Uninsured Motorist Protection- Gives you coverage when you or any occupants of your car are injured by an uninsured or hit-and-run drivers. You also have underinsurance coverage when you’re injured by any driver who has minimal insurance coverage.

Collision Coverage- Your insurance covers all damages to your car up to its book value. Collision coverage has a deductible. It’s the amount you have to pay per claim before the insurance takes effect. The lower the deductible, the higher the premium.

Comprehensive (Physical Damage)- It covers all damages you incur from nonaccident causes like vandalism, flood, theft, wind, hailstorms. Like the collision coverage, it also has a deductible.


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