The vehicle you drive says a lot about your personal driving preferences. Just as important, is having personal automobile insurance to protect your vehicle and your personal liability from unexpected financial risk or loss. Personal automobile insurance can cover the costs of damages and losses resulting from an accident, damage to your vehicle or injuries to others.
Premium is the amount you’re required to pay your insurer for a specific amount of time for your insurance policy. This payment might be due all at once or it can be divided and paid in increments, typically monthly.
Deductible is the amount you must pay before your insurance coverage begins. This payment is made in addition to the regular price of your premium.
Collision pays to repair or replace your car — up to limits set by your policy — if it’s damaged in an accident.
Comprehensive covers damage to your car that’s not the result of an accident, such as vandalism or theft.
Property damage liability covers damage you do to someone else’s car or other property.
Bodily injury liability pays for claims against you if you injure someone with your car, as well as legal fees if you’re sued.
Uninsured/underinsured motorist pays medical and other costs for you and passengers if a driver without insurance or an underinsured driver hits you.
Medical or personal injury protection pays medical bills for you and anyone in your car, or for you if you’re in someone else’s vehicle.
Typical personal automobile insurance coverage includes medical payments, uninsured and underinsured motorist coverage, towing and labor, and rental reimbursement. You are able to elect from the two kinds of physical damage coverage: collision and comprehensive.
You’ll want to re-evaluate your insurance coverage on a regular basis to be sure the coverage is meeting your changing needs.
