Looking at your insurance policy can be confusing and stressful if you don’t understand what the different types of coverage listed means. Then to add to the confusion there is the whole other factor of what all the numbers mean! This is where Northwoods comes in, when you call us for insurance, we take the time to explain each of the coverages and what the numbers on your policy mean. But, in the meantime here is a brief and easy to understand explanation of each of the main car insurance coverage that you will probably find on your policy!
Auto liability coverage
This will cover you if you are in an accident. Liability coverage will pay for the following situations: bodily injury and property damage from an accident you are legally responsible for; defense costs (as long as your policy covers the loss in question); cost for settling or defending you as deemed appropriate by your insurance company (until the limits are exhausted).
Uninsured and underinsured motorist coverage
If you are in an accident and the other driver does not have insurance this may provide you with coverage for medical bills from injuries caused by the accident. If the person you got into an accident with has insurance but they don’t have enough liability coverage to cover your medical bills, they are an underinsured motorist.
Comprehensive/ Other-than-collision coverage
This provides coverage for damage caused by something other than a collision with another vehicle. Some situations would include (but not limited to): contact with birds and animals, fire, and breakage of glass.
Collision will cover the costs of repairs (up to your limit, after you paid your deducible) to your vehicle if you were in an accident with a vehicle or object. Objects include fences, guardrails, or trees.
Medical payments coverage
This may help pay your medical expenses or your passengers if you are in a car accident. Medical payments coverage could help pay for immediate expenses such as hospital visits, surgeries, and ambulance fees.
Personal injury protection (PIP)
PIP coverage is very similar to medical payments coverage, but there is one important difference. Personal injury protection will cover healthcare costs and could cover non-medical related costs such as lost wages for you and your passengers if you are in an accident.
Limits are mentioned a few times when describing some of the coverages. So, what exactly are limits? Limits are the highest amount that your insurance company will pay for a covered claim. This means that your policy will only pay up to the amount stated anything that exceeds that amount will have to be paid by you.
We hope this helps you understand your car insurance coverage a little better. If you have questions about any type of insurance, please do not hesitate to call us!
Check out our article on Motorcycle Safety Tips!
By: Lauren DiBartolomeo
June 19, 2020
*This is for advertisement purposes and not guaranteed that you have this coverage on your policy since some coverages are not required in every state. If you have questions about your policy or are interested in getting a policy please call us: (716)634-5656