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Auto
Insurance: 6 Policies wrapped into 1.
The truth
about the typical auto policy and why such a policy is so important is
that it is many kinds of coverage. Let's take a quick look at what they
are.
| 1.
Bodily injury liability insurance is in case you cause an accident
and somebody else is hurt or even killed. |
| 2.
Property damage liability insurance is in case you damage property
that belongs to somebody else. It's usually someone else's car - but
not always. People have damaged all sorts of things - and have been
protected by their property damage liability. Garages, buildings,
fences, carports. Just about anything you can hit with your car. |
| 3.
Collision insurance is the damage to your car as the result
of colliding with another car or other object. |
| 4.
Comprehensive insurance is in case your car is damaged - or
stolen - in a way that doesn't involve a collision. Let's say a storm
blows a tree on it. Or a thief breaks into it and wrenches out the
radio and speakers. Those are the kinds of things covered by your
comprehensive insurance. |
| 5.
Medical payments insurance pays medical - and even funeral
expenses - for you, members of your family and passengers in the event
of an auto accident, regardless of who caused the accident. It even
covers you if you're a pedestrian. |
| 6.
Uninsured motorists coverage pays for injuries if you're hit
by a driver who doesn't have insurance. Even in states where insurance
is mandatory, there are lots of drivers on the road who don't have
insurance. |
| That's
a quick overview of the six kinds of insurance you'll usually find
in an auto policy. (Please be aware, this information is offered as
general information. It is not a legal definition of any auto policy,
many which vary slightly - and is not a substitute for reading and
understanding your own policy!) |
Serving the
Midwest since 1984.
© Boone Mutual Agency, USA Agencies 2000-2006
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