Do You Know What Protection Your Auto Insurance Policy Provides?

All too often, individuals find themselves shocked to learn that their auto insurance policy does not cover them in a specific situation. Unfortunately, if you are at a point where your claim is being denied due to a lack of coverage, it is too late to go back and make sure your policy offers the protection you need. That is why it is so important that you take the time to evaluate your coverage needs and ensure your policy provides the type of coverage you want before you find yourself in the position of needing to use it. The first step in accomplishing this important task is to identify what types of coverage you require. To do this, you will need to understand all of your coverage options.

Your Liability Coverage

Liability coverage is the most basic type of coverage included in an auto insurance policy and is required by law. This coverage is typically broken down into property damage and bodily injury coverage limits. Your property damage liability coverage provides protection for damage to another driver's vehicle or other personal property if you cause an accident. Bodily injury coverage, on the other hand, pays for medical expenses related to any injuries suffered by other parties if you cause an accident. While the law will require you to carry a minimal amount of coverage in both property damage and bodily injury liability insurance, you may want to consider raising your coverage limits to ensure you have enough coverage in the event of a serious accident.

Your Collision And Comprehensive Coverage

If you are still making payments on your vehicle, your lender will likely require you to include collision and comprehensive coverage in your auto insurance policy. If you own your vehicle outright, maintaining this type of coverage will be completely optional. The purpose of this coverage is to cover the cost of repairing damage to your vehicle if you cause an accident or if it is damaged as the result of severe weather. This type of coverage will often include protection in the event your vehicle is stolen as well. Generally speaking, the more your vehicle is worth, the more beneficial maintaining this type of coverage will be. 

Your Uninsured Driver Coverage

Your auto insurance policy may also include something known as uninsured driver or uninsured motorist coverage. This type of coverage allows you to file a claim against your own auto insurance policy in the event your vehicle is ever damaged by a driver who does not have any insurance coverage. While this type of coverage is optional, it is often a good idea to maintain this coverage since trying to recover damages from an uninsured driver in civil court can be a lengthy process.

Contact an auto insurance agent to learn more.