A car insurance policy contains three types of coverages. There is collision coverage, comprehensive coverage, and bodily injury coverage that are provided on a typical policy. Most states require people that own there own vehicle to carry a minimum amount of insurance coverage.
One of the basic coverages that comes with a car insurance quote is called collision. The collision coverage of a car insurance policy is designed to pay for damages that result from an accident that involves another vehicle. This includes fender benders or any other type of accident that can occur on a busy road or highway. Coverage limits are available ranging from $40,000 or $50,000 to $500,000 or more depending on the amount of coverage that is needed. An insurance company usually offers this coverage in amounts that are high enough so that an individual is not under insured. Usually though insurance companies will not sell an insurance policy that under insurers a driver.
The coverage on an automobile policy that will pay for non-collision damages to a vehicle is called comprehensive. Comprehensive coverage was designed to pay for damage to a vehicle as the result of falling objects, storms, theft, vandalism, etc. When traveling on a road or highway the most common type of damage done to a vehicle is caused by hitting a deer or other animal. However, in the event a vehicle is ever vandalized or stolen it is the comprehensive coverage on the policy that will pay for the damage. When making a comprehensive claim on an automobile policy the deductible will always need to be paid first.
The coverage on a car insurance policy that pays for medical costs from the result of injury is called bodily injury. Bodily injury coverage pays for injury that is sustained to individual’s that are involved in an automobile accident. This coverage also pays for other related expenses such as rehabilitation, medicines and lost income if an injured person cannot work. Bodily injury coverage also includes liability which pays for legal costs if an insured is ever sued. If a person in injured in a state that has no fault insurance laws a claim needs to be filed with a person’s own insurance company. This is because no fault insurance laws also limit the ability so sue for damages.
Most states have laws that require a minimum amount of coverage to be carried on a car insurance policy. As a result insurers that sell car insurance are not going to offer coverage that falls below the minimum required for a particular state. In most states it is also illegal to drive a vehicle that does not have insurance coverage.