Purchasing car insurance is confusing. There’s a lot of terminology that is not readily defined. This article will help you understand a few of the different types of auto insurance policies that exist.
Liability Coverage
Liability coverage provides you with coverage if you’re in an accident and are at fault. There are two types: injuries for other people or to another person’s property (ie, their car). Liability will cover the costs of the other person’s injuries and damages if there are any.
Medical Payments Coverage
Medical payments coverage is for your medical expenses if you are injured in an accident. It also covers your passengers and it doesn’t matter who’s at fault.
Uninsured and Underinsured
Uninsured motorist coverage is applicable if you hit someone who doesn’t have insurance. This will cover the cost that their lack of insurance can’t pay. 1 in 7 drivers are uninsured, so look out for yourself.
There’s also underinsured coverage in case the other driver’s insurance can’t cover your costs, but they do have insurance.
Physical Damage Coverage
Physical damage coverage pays for direct and accidental damage to your vehicle. There’s “collision” and “other than collision”. Collision is self-explanatory, and other than collision is for random accidents like your engine blowing up.