Major Types Of Auto Insurance CoverageMajor Types Of Auto Insurance Coverage

Auto insurance companies offer a wide range of coverage options for you to purchase. Sometimes it can get so confusing that you don't really understand what the different types of coverage protect you from, and what you're really paying for.

Bodily Injury Liability

Bodily Injury Liability is auto insurance that covers any bodily injury or death that might occur during an accident in which you are responsible. This type of coverage also pays for legal fees incurred in incidents like these. This type of coverage does not cover the injuries that occur to you or other people on your policy, but it does apply to other people in your vehicle. The types of claims this type of coverage pays for are things like other people's medical bills, loss of income, and pain and suffering. This liability coverage also does not cover damage to either car.

It is important that your limits for bodily injury liability insurance are high enough, otherwise you could be at risk for some serious financial hardship. If your insurance does not cover all of someone's hospital bills, for instance, you will be required to pay the balance out of your own pocket.

Property Damage Liability

Property Damage Liability covers the damage that occurs to the other party's property. While in most cases the property involved is someone's car, this type of insurance also covers fences, houses, and other types of property that you could potentially damage in an accident.

Just like Bodily Injury Liability, it is important that your limits on Property Damage Liability are high enough. If the damages to a car or another type of property are higher than your insurance will cover you will be on the line for the rest of it.

Comprehensive Coverage

This is a catch-all type of coverage that covers your car or another car that you happen to be driving at the time of the accident. Not only does it cover the damage that might occur to your vehicle during an accident, it also covers your expenses if your car is stolen and damaged, or if it is damaged by nature, a tree falling on it, or an animal. You will have a deductable with this type of coverage, and the coverage will pay for all the damages less than the cost of your deductable. The higher your deductable, the more you will have to pay out of pocket, but it will likely lower your monthly premium. The lower your deductable, the higher your monthly premium, but the less you pay out of pocket should your vehicle need repairs.

Collision Coverage

This type of coverage pays for the damage that occurs to your car when you hit another vehicle, or when someone else hits your vehicle. The higher amount you'd be willing to pay out of pocket will make your monthly premium lower, but if you have an older car you might consider dropping this coverage altogether, since the most an insurance company will pay is the value of your car, and if you car is not worth very much it might not be worth it to repair it.

There are many other types of optional insurance, but these four listed above are the most common and most important of the insurance coverage options you can purchase.
by Larry J. Reaves
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Lawrence Reaves turns to the good people at VA Insurance for his Richmond car insurance needs, as well as his Richmond home insurance needs.
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