The Anatomy of an Auto Policy

The better you understand how auto insurance works, the more informed you will be as a consumer when shopping for an auto insurance quote. Here are the basics of an average auto policy.

1. Bodily injury liability coverage. This coverage protects you from injuries you cause another driver in the event of an accident. Most states require certain levels of this protection, so make sure you know your states requirements before applying for an auto insurance quote.
2. Property damage liability coverage. This coverage will protect you in the event that your car damages another's property in a covered accident. Property damage coverage will also cover your legal defense in the event that another party in the accident files a lawsuit against you. Keep in mind when getting an auto insurance quote that most states require certain levels of this coverage to drive legally.
3. Collision coverage. This coverage pays to repair or replace your vehicle in the event it is damaged in a covered accident. If your car has little to no cash value, you might consider getting an auto insurance quote without this coverage, as the insurance company will only reimburse you for up to the cash value of the vehicle.
4. Medical payments coverage. This coverage will pay for the medical expenses of you and your passengers in the event of a covered accident. If you have a good health insurance policy, you might consider getting an auto insurance quote without this coverage.
5. Rental reimbursement coverage. If your car is disabled for any reason, rental reimbursement will pay for the cost of a rental, up to a certain amount per day. This is an important coverage if your car ever needs to be replaced or repaired after a collision.
6. Uninsured/underinsured motorist coverage. Given the increasing number of uninsured and underinsured drivers on the road these days, this coverage is especially critical. This coverage will pay for your medical expenses for injuries caused by an underinsured or uninsured driver. In some states, you can also receive an auto insurance quote on uninsured motorist coverage that covers property damage as well.
7. Comprehensive coverage. This is basically a coverage that offers protection against any damage that occurs to your vehicle not resulting from a collision. This usually includes weather-related damage, theft, vandalism, etc. If you have any inquiries, please visit our frequently asked questions page.