What Does Car Insurance Cover Exactly?
If you own a car, it is essential you have insurance coverage for it because, when you are driving on the road, you are responsible for the safety of pedestrians, public property and yourself.
If you have an unfortunate accident or any other damages while driving, the amount your car insurance covers would depend on the type of insurance policy you hold.
If you have liability car insurance coverage, the insurance would pay for the physical injuries you cause. It would also pay for the damage you caused to other people’s property. This implies that your own assets would be saved and you need not have to pay for the damages.
If you have a property damage liability coverage policy, the insurance would cover all the damages to the property to the extent of your policy amount. This car insurance policy would also pay for damage you cause to government property like a streetlight or signboard.
If you have other optional coverage like collision, your insurance would help you cope with the expense of an accident or robbery. It also covers any physical damage to your car if your car is hit by another car or other objects.
If you have a comprehensive coverage policy, it not only covers your vehicle, but also any other vehicle you drive. This comprehensive car insurance policy covers your vehicle against theft, or damage to the vehicle by an accident, natural calamity, fire or by animals.
The Medical / Personal Injury Protection (PIP) insurance pays for the treatment of the injured insurance holder, whether the injury occurred while driving the car or while he was just a passenger in his car. This type of car insurance policy also pays the funeral costs if the policyholder looses his life.
Uninsured/underinsured coverage covers the damage caused by a driver who does not have any insurance or insufficient cover to pay for the total of damages. It also covers any bodily damage to any member of your family should you be involved in a hit and run.
Does the car insurance cover pets in a car accident? This is a very frequently asked question and the answer is yes, but only under certain conditions. Most insurance policies cover only humans, but there is an option to cover your pets as well, though it does have many restrictions. The pet's injuries are covered only under the property insurance liability.
It is important to note that the above types of car insurance coverage require separate fees. Details of what your auto insurance policy covers is available in your policy document. If you are unsure, contact your insurance provider for details.
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- The Troubles of Driving without Auto Insurance
- What to do Following a Car Accident? Dealing with the Unfortunate