What Does Auto Insurance Cover?
First, it’s important to note that each state has different laws that determine which types of auto coverage you need and the minimum limits your policy must possess. Auto insurance acts as a contract between you and your insurance provider, outlining the specific expenses each party is responsible for paying after a motor vehicle accident.
In most cases, auto insurance covers the repair and replacement costs of your vehicle, the medical bills of passengers who are injured, and any liability issues that may stem from a covered incident. While every policy features different coverage guidelines and reimbursement limits, nearly all provide some protection in three key areas:
Repairing or replacing a damaged vehicle can be costly, especially if you have to pay out of pocket. Luckily, auto insurance offers several coverage options that can help you get back on the road as quickly as possible.
- Comprehensive: Protects your vehicle from non-collision hazards like fire, falling tree limbs, natural disasters, vandalism and theft.
- Collision: Helps you repair or replace your vehicle following an on-the-road accident, from minor touch ups to full-scale rebuilds and more.
- Rental car: Reimburses you for any car rental costs if your insured vehicle is being repaired or if it was totaled in an accident.
- Emergency roadside service: Pays for any towing or roadside service fees you may be charged if your vehicle breaks down or is damaged in an accident.
If you or your passengers are injured in a vehicle collision, this type of auto insurance coverage will help pay for medical care and physical therapy costs.
- Medical payments: Covers accident-related medical expenses for you, your passengers and other drivers listed in your policy.
- Personal injury protection: Provides financial support if you or your passengers are hospitalized following a vehicle accident, regardless of who is at fault. This type of medical coverage is typically offered in states with no-fault insurance restrictions.
This type of insurance coverage pays for damages, medical care and lost wages for other drivers or passengers if you’re found at fault for a vehicle accident. Unlike some forms of auto insurance, liability coverage is required in most states.
- Bodily injury: Protects you from financial loss by covering the medical expenses of other injured drivers and passengers following an accident you are held responsible for.
- Property damage: Covers the repair and replacement costs for any vehicles and personal property you accidentally damage, including garages, mailboxes, fences and more.
- Uninsured/underinsured motorists: Safeguards you from drivers who have inadequate coverage or no insurance at all, especially in New Hampshire and Virginia, which do not have auto insurance requirements.
Getting A Good Deal On Your Auto Insurance
It rarely makes sense to choose minimum coverage, but that is typically what is quoted in order to provide the cheapest price. The best way to save on your auto insurance is to take advantage of policy discounts offered by your provider, including safe driver, customer loyalty and equipment-related programs. Bundling your home and auto policies can significantly reduce your overall insurance expenses, so be sure to contact National Advisors Group to obtain a customized policy package.
Working with an independent insurance agency can help you assemble the best coverage options from a variety of top-rated carriers. If you’re looking to maximize your auto insurance coverage, reach out to National Advisors Group to complete a free Personal Risk Review today!