You may have full coverage auto insurance but do you really know what it includes? Generally, they are separated into two; fully comprehensive and liabilities only policies. It looks simple and explanatory but there could be considerable differences between two full cover policies. Here are some of the main components of policies.
Liabilities Car Insurance
This part insures you against any liability claim you may face after causing an accident. Generally they have two parts; Injuries and Damages. Every state in the USA has minimum limits set for both. However, most policies come a lot more protection than stipulated in basic requirements.
If you cause an accident there may be damages to other vehicles and properties and injuries to people. Someone has got to pay for those claims and it would be your insurer as long as you have sufficient cover. If not, they would be suing you for everything you got.
When they say, you have to buy insurance to be able to drive legally, they mean liabilities. As long as you have this part covered you are considered insured in the eyes of the law. It is totally your problem if you want to insure your own damages and injuries.
When you are in a crash you may suffer serious damages to your auto or it may be totalled. You have invested a lot of money on it and you want some sort of compensation if this happens. That is why everyone includes collision cover.
If it is your fault you can claim from your insurer. If someone else at fault you can try to claim from their policies. Failing that you can still come back and claim from your own insurer. The maximum amount you can be paid is the open market value of your vehicle.
There are a few other ways you can sustain auto damages except crashes. Most of them are covered under comprehensive coverage like fire, theft, vandalism, natural disasters and falling trees.
When you have a fairly new automobile it is wise to protect your investment by buying comprehensive and collision coverage. You may look into dropping them when it is too old to be worth much money. Both usually have deductibles to be paid in case of claims.
Uninsured Motorist Cover
Did you know that nearly fifteen percent of American motorists don’t have basic liabilities coverage? This means that they wouldn’t have policies to cover your damages and injuries if they hit your car. This is a serious concern for states and policyholders and some states mandate companies to include this coverage automatically.
It would be near impossible to try and get money from someone who didn’t have money to buy a policy in the first place. Therefore, the best option would be to insure yourself in case one of those uninsured cars hit you.
Personal Injury Protection
Another potential problem is that you and your family won’t be covered for injuries if you are at fault. To get over this issue you will need to buy Personal Injury Protection. This would be mandatory if you live in a no fault state where you claim for your injuries from your own insurer.
Otherwise, check if your health insurance is sufficient to pay for traffic injuries to you and your family. There is no need to double the coverage if you have already got one.
Rental Reimbursement Cover
You may want your insurer pay for auto rental if yours is in the body shop for an insured loss. This is an additional coverage and you can buy it at a marginal extra premium. There are daily limits and maximum rental period in most policies. So, check them out carefully.
There are a few extras you can buy separately or included in your policy. Roadside recovery, extended legal defence are some of them. You can actually include accident forgiveness here as well. If you are eligible it is something to consider. Your insurer forgives the first accident you have and not increase your rate because of it.
You can buy policies off the shelf that includes most of the items you need. Alternatively, you can get them added onto your policy. The more you customize your coverage the more you are likely to pay.