Auto Insurance – Comprehensive Coverages

Auto insurance is coverage for automobiles, trucks, motorcycles, or other road-going vehicles. Its primary function is to offer financial coverage against physical damage or personal injury resulting from road accidents and from liability which may also arise from accidents in a moving vehicle. Auto insurance also takes care of injuries to other persons while in an automobile. The minimum amount of auto insurance required by law is the following:

Liability. This covers any injury to a third party caused by the negligence of the driver of a vehicle or any other person. In general, if a third party is injured in a vehicular accident, the driver of the vehicle will be held liable for all medical bills, pain and suffering, physical disability resulting from the injury, and funeral expenses. This also covers the cost of damages to the vehicle and any property damaged during the collision.

Bodily Injury. This type of auto insurance offers compensation for injury to a person caused by an accident. This may include bodily injury, disease, or death caused by an accident. If a person is killed as a result of a vehicular accident, his family can file a wrongful death suit to recover compensation for the loss of his loved one. In addition, the person who was the cause of the accident may be responsible for other related legal action. If you are in an accident, stay at the scene until the police tell you that the driver of the other vehicle has stopped.

Property Damage Liability. This part of auto insurance provides coverage for damage to a person’s car due to circumstances beyond its control, such as theft or vandalism. The most auto policy provides coverage for damage due to fire, vandalism, or collision, but some only provide collision coverage. Generally speaking, the more comprehensive a policy is, the more your car insurance company will pay to repair or replace your vehicle. However, keep in mind that the cost of the replacement is usually dependent on the value of the car.

Collision Damage Waiver (CDW). CDW is a combination of medical payments and loss of earnings coverage provided through your auto insurance company. If your car is severely damaged in a collision with another vehicle, you may be able to get additional benefits from your CDW policy. CDW is optional coverages; therefore, you must carefully review the details of your CDW policy to determine if it is the right option for your needs.

Comprehensive Collision Insurance. This provides coverage for damages to a vehicle caused by a collision with a train, another vehicle, or a freight train. For this type of auto insurance, you must choose between collision and comprehensive coverage. Many times, collision policies will provide you with the same benefits as comprehensive policies, but with a higher premium. If you purchase the minimum liability auto insurance required by your state, you may never need to add any other types of car insurance to your vehicle.