Auto Insurance Coverage When it comes to auto insurance, many people are easily confused by all the different types of coverage available. To understand these coverage types better, they are listed below with definitions and explanations for your benefit. State Mandated Coverage Types Bodily Injury Liability • Covers injuries sustained in an accident • Will be defined in two limits, one for per accident coverage, another for per person coverage • Seen on your policy as 50/100, etc • Available from 12,500/25,000 up to 300,000/500,000, sometimes higher Property Damage • Covers damages to vehicles and other property when you are at fault • Can be as low as $5,000 or up to $100,000 or more • Will be the third number on your insurance policy (25/50/25) Personal Injury Protection • Only required in “no-fault” states • Covers injuries of yourself and others in your vehicle regardless of fault • Up to $1 million in coverage available Uninsured/Underinsured Motorist Coverage • Only required by some states, optional in most • Will have the same coverage limits as the bodily injury liability unless you choose otherwise • Covers damages and injuries if you are involved in an accident with someone who has little or no auto insurance Optional Coverage Types Comprehensive Coverage • Covers non-accident related damages to your vehicle • Theft, natural disaster, and fire or water damage covered • Available in amounts up to the full replacement cost of your vehicle • Deductibles of $250, $500, or $1,000 Collision Coverage • Covers damages due to auto accidents regardless of fault, or if you’re in a single car accident • Doesn’t cover non-accidental damages (e.g. theft) • Available in various amounts, from partial to full coverage of your vehicle • Deductibles of $250, $500, or $1,000 Other Endorsements • Additional Drivers: drivers added to your policy aside from yourself • Rental Reimbursement: pays for rental cars in the event your car is getting repaired or is unusable • Roadside assistance: 24 hour service to call for mechanical assistance, locking keys in car, and towing needs • Funeral benefits: covers costs of funeral expenses related to an accident • Gap Insurance: provides coverage for the difference in the amount of coverage you have and the actual market value to replace your vehicle • Medical Payments Coverage: covers medical payments for yourself and other passengers, often required in no-fault states • Towing Coverage: allows your vehicle to be towed and insurance pays for it Now that you have a better understanding of auto insurance, it may be easier for you to save money on your auto insurance rates and premiums. It does no good for you to know that you can save money on coverage when you don’t understand that coverage in the first place. Category : insurance | link : http://www2.fortunebisnis.com/view/Auto-Insurance-Coverage.html