What is Your Car Insurance Actually Covering?

There are many ingredients that can be thrown into a car insurance policy.  It is essential to understand which coverages are necessary and most important to you.  Listed below are the different types of coverages which will help you choose what you need and what you don’t within your own policy.

1. Bodily Injury Liability Coverage – if you are responsible for an accident, bodily injury will cover any injury or death claims against you and all legal costs. If you have state minimum limits, your insurance may run out and you will be forced to pay out of pocket.
2. Property Damage Liability Coverage – covers claims for property damage caused by your car in an accident. Because liability coverage protects the other party, it is required in most states.
3. Medical Payments – pays for injury to yourself and anyone else in your car.  This is optional in some states.  In “no-fault” states, this coverage is called Personal Injury Protection (PIP).  Medical Payments can save you from having to use your primary health insurance that usually contains a large deductible.
4. Uninsured/Underinsured motorist protection- covers injuries to anyone in your car caused by uninsured or hit-and-run drivers. Under-Insured protection will cover claims you make against a driver with inadequate insurance.  In some states, as many as 30% of drivers are uninsured.
5. Collision Coverage- covers damage to your car up to full actual cash value at the time of loss. This car insurance coverage carries a deductible, which is the amount of the claim you have to pay out of pocket before the car insurance policy will pay out. In all insurance cases, the lower the deductible, the higher the premium. This is an optional coverage, but if you have a loan or are leasing the car, it is usually required by your finance company.
6. Comprehensive Coverage - covers damage to your car from theft, vandalism, fire, wind, flood, and other non-accident causes. Comprehensive also carriers a deductible and is optional, but if you have a loan or are leasing the car, it is usually required by your finance company.
7.  Rental Coverage and Roadside Assistance – these are extra coverages and are usually very inexpensive to add to a car insurance policy. Rental coverage will pay for renting a car when your car is disabled due to a claim. Roadside Assistance (also called towing coverage) will pay to have your car towed in case of a breakdown.

Call 214-838-5425 and ask for Jessica Weaver or email her at jessica.weaver@twginsurance.com!