4. What Does Car Insurance Cover?
When you're about to purchase the suitable car insurance policy, you can choose the features you want to include in it. Some of them are obligatory in all states, and there are some extra coverages which are optional.
Have a look at the list of standard coverages offered in most countries, and see why the insurance can help you:
• Liability insurance
– this is the only feature required in all states. Liability insurance covers the damages you're responsible for – damage to the other cars, damage to the objects (mailbox, fences, phone pole…) and even the court costs in case someone sues you for causing the accident.
• Comprehensive insurance
– this insurance covers the expenses in case of events beyond your control such as vandalism, natural catastrophes (earthquake, lightning, storms…), accidents with animals (hitting a dear) or in case someone steals your vehicle.
• Collision insurance
– as it name says, the collision insurance offers the coverage for the damages to your car caused by crashing with another vehicle, no matter whose fault it is. It also includes compensation in case of car overturn.
• Uninsured motorist coverage
– according to statistics, there are about 13% of motorists statewide who drive with inadequate insurance or without any insurance at all. In case some of them hit you, and his or her premium can't cover the damage, this indemnification kicks in.
• Medical payments and PIP
– Both will cover the medical bills in case you or your passengers are hurt in a car accident, no matter who’s responsible. Also, they will cover medical expenses in case your family member got injured while riding in another person’s car.
PIP (Personal Injury Protection) is offered in some states, and it includes covering the funeral expenses or rehabilitation costs.
Now, let’s have a look at the extra coverages which you can choose optionally:
• Rental reimbursement
– repairing a rental car is super pricey. If you decide to purchase rental car reimbursement, the insurance will cover all the repair expenses which usually start from $120 a day – and the process of repairment can last even 13 days!
• Roadside assistance
– In case your car stops in the middle of the road, this package includes paying for towing to the nearest mechanic, fuel delivery, pulling your stuck vehicle out of the mud or changing the tire.
All the mentioned coverages may vary from state to state, and it's important to consult your insurance agent and ask him or her everything that you need to know before you make a purchase. Also, have in mind that the insurances don’t cover the costs of maintenance of the vehicle.