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Types of Auto Insurance Coverage That protects Your Life

It’s important to know what coverages are listed in the contract and also to comprehend different types of auto insurance coverage while going for purchasing policy. Almost all California auto insurance companies describe well the coverages they offer. Some of the mostly common and important coverages offered by the companies are discussed below.

Liability coverage

If for the fault from your side other people suffer, then the damages will be covered by Liability coverages. Liability coverage has two subdivisions: one is bodily injury liability or BI and the other is property damage or PD. For example, if you meet an accident for your own fault, bodily injury liability will cover the person’s expenses of medical or funeral, when needed. If your limited coverage can not make up the expenses, then the person’s own coverage will help in this case. On the other hand, if the at-fault accident causes damage to the person’s property, then the PD will cover the repairing cost.

Uninsured and underinsured motorist coverage

This coverage is shortly known as UM/UIM that pays for expenses if some one hits you who does not have auto insurance policy. It covers your medical expenses if the person who caused the accident has too small coverage to cover the expenses.

Medical payments

This Medical payments coverage covers the medical expenses for anyone riding in your vehicle as a result of an accident.

Comprehensive coverage

If your vehicle gets damaged for other reasons besides accidents, then this comprehensive coverage covers the expenses. This coverage acts in cases like vehicle stealing, damage from weather, fires and earthquakes are also covered under this coverage. You will have to pay a deductible after which comprehensive coverage picks up the rest of the cost. If you choose higher deductible, you will get lower premium.

Collision coverage

If you meet an at-fault accident, then Collision Coverage pays to repair or replace your vehicle. But if your policy does not have the collision coverage, then you will be responsible for the cost of repairs. If the accident is caused by the other party,, then the cost will be paid by their insurance company. In the state of California, the collision coverage is not a mandate, so when you purchase auto insurance in California, check whether you need it or not.

These are some of the common auto insurance coverages that auto insurance companies in California offer and you want to know before going for purchasing.