Car Insurance Coverage: Auto Coverage Types & More
With the variety of coverages available, it’s difficult to figure out which is best for you. Understanding the different coverages will help you determine the most suitable auto insurance policy to meet your requirements and budget. Find out about the different types of insurance for autos through GEICO.
What is the definition of car insurance?
Car insurance protects your finances, your family, other passengers, and your car. You can select the amount of insurance you need by choosing your limits and coverages. A car insurance policy may offer coverage for:
- Accidents
- Liability
- Medical costs
- Property
- Vehicles
Understanding Your Auto Insurance
Your insurance for your car is comprised of several coverages which protect you in various circumstances involving your vehicle. Different coverages have limits and could have deductibles. A lienholder or lenders may also demand limits and coverages.
To understand the insurance policy, here are some terms that you need to know about insurance:
- Coverage: protection and benefits that are provided to you
- Limits the maximum amount of protection allowed for an individual coverage
- The policy is a contract with your insurer
- Premium the cost of your insurance policy
- Deductible: the portion that you take out of pocket if you submit an insurance claim
If you look at auto insurance rates, ensure that you get the same policies, deductibles, and limits. Finding car insurance is simple and quick through GEICO. Find out more about how rates for auto insurance are calculated.
Types of Car Insurance Coverage
First, let’s be clear that there isn’t a concept in the term ” full coverage.” Certain people might say that “full coverage” means the minimum liability insurance coverages they have for your state. It could also mean comprehensive coverage and collision coverage. It could also refer to other things. It is important to select the right coverages for you. “Full coverage” is an insurance myth.
What are the different kinds of insurance coverages? Auto insurance can include liability insurance for vehicles, vehicle coverages, insurance for yourself, and other optional coverages.
Liability Coverages
Liability Insurance comprises:
- Liability for Bodily Injuries will pay damages for injuries to the body or death that result from an accident in which you were at fault.
- Property Damage Liability is a way to pay for damages to the property of someone else’s from an accident in which you were at fault.
In case of serious accidents, You need enough insurance to pay for a judgment against you in the event of a lawsuit without risking your personal wealth. It’s, therefore, a good idea to maintain the same amount of bodily injury insurance for all of your vehicles. It is also possible to look into a general insurance plan that offers additional coverage in the event of more serious accidents or lawsuits.
Medical Coverages
- Medical payments insurance could be used to pay medical costs resulting from an automobile accident.
- Personal Injury Insurance could be used to pay for medical treatments, lost wages, or other expenses related to an accident, regardless of the person who caused the accident.
Uninsured Motorist Coverages
- Uninsured motorist insurance could pay for injuries or property damage caused by a motorist who is not insured.
- Uninsured Motorist insurance is a way to help you defend yourself against at-fault drivers who do not have enough insurance coverage to cover your claim.
Vehicle Coverages
- Insurance for a collision could cover the cost of damage to your vehicle when it is struck by another vehicle or object.
- Comprehensive coverage could cover the cost of damage to your vehicle due to vandalism, theft, flooding, fire, or other losses covered by insurance.
You could reduce the cost of your insurance when you choose a higher deductible. If you own an older vehicle, you may consider whether you require these insurances since they typically limit the amount of cash you can earn from your vehicle.
Additional Auto Insurance Coverages
- Emergency Road Service
- Rental Reimbursement
- Mechanical Breakdown Insurance
There’s a lot you can learn about insurance coverages for autos.
What amount of automobile insurance do I require?
The amount of insurance coverage is determined by your budget, needs, and the state’s requirements. Things to keep in mind while choosing the right coverage include:
- What limits and coverages does my state need in all vehicles?
- Does my lienholder meet the required coverage?
- Do I have to safeguard other assets, including my house?
- How much money can I be able to afford to pay out in cash at any one moment?
- What’s my car worth right now?
We suggest checking your state’s insurance minimums and looking over the various coverage options to ensure you are covered with the correct coverage. We have an Insurance Calculator that will help you determine the correct amount of coverage and appropriate deductible for your budget.
