Car Insurance Coverage Explanation

Auto insurance coverage insures you not only for injuries that you may cause to another party and their property, it also provides protection for you, your passengers and your vehicle. There are a varying amount of coverage selections, and you must select the coverages that meet your needs. The first step in your selection is to understand the basic coverages.

Bodily Injury and Property Damage Liability

Bodily injury coverage insures the injuries caused to the other party should you be deemed at fault for the accident. The property damage coverage insures the resulting damage to the other party's vehicle. These coverages are required in most states.

Uninsured and Underinsured Motorist Liability

Uninsured motorist coverage insures your resulting injuries should you be hit by someone who has no insurance coverage. Underinsured motorist liability insures your injuries if you are hit by someone who does not have enough coverage. These coverages are commonly sold along with liability, and are very inexpensive.

Medical Payment Coverage

Medical payment coverage provides additional medical assistance for emergency room visits, surgery and follow-up visits. This is usually an optional coverage.

Comprehensive and Collision Coverage

Comprehensive coverage covers your vehicle from fire, theft, acts of nature and acts of fowl. Collision coverage covers your vehicle should you strike a non-moving object with your vehicle. You cannot purchase collision coverage without comprehensive coverage.

Rental Reimbursement and Towing

You can select rental reimbursement coverage when you also select comprehensive and collision coverage on your policy. The coverage becomes effective when you are involved in a claim that results in damage to an insured vehicle. Towing coverage insures claim and non-claim tows based on policy specifics.


About the Author

Writing professionally since 2004, Charmayne Smith focuses on corporate materials such as training manuals, business plans, grant applications and technical manuals. Smith's articles have appeared in the "Houston Chronicle" and on various websites, drawing on her extensive experience in corporate management and property/casualty insurance.