Whether your car is coming up for renewal, you’re looking to get some quotes for when your renewal date arrives, or you’re looking to insure your very first car, it’s always good to know what car insurance coverages are out there.
With this in mind, we have gathered together the coverages that are deemed the most important, when considering which coverages are best to add to your policy.
So, what does car insurance cover? Scroll to find out.
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Important coverages worth knowing
A car insurance policy is effectively a collection of coverages put together to create a customized policy to suit you, your driving needs, your car and your wallet.
With many coverages to choose from, it’s vital you choose the right coverages for you and your budget, to help you out if ever you’re involved in a car accident – whether it be your fault or not.
As mentioned above, there are a variety of coverages to choose from, with some being deemed most important to have within your policy. Therefore, we wanted to take a closer look at them, to see what they are, what they cover, and how they could help you if the worst was to happen.
Collision Coverage
If you were to be involved in a car accident, whether it be your fault or not, and your car gets damaged in the process, this coverage helps to cover the costs of any repairs or even a replacement. Essentially, this coverage tries to help you get back on the road, with a fixed or replaced car.
Comprehensive Coverage
Also known as the ‘act of god’ coverage, this helps to cover the costs of any damage to your car, whether it requires some repairs or a total replacement, after an incident that wasn’t a car accident.
This could be anything from a tree falling on your car in a storm, to a deer running out in front of you, to vandalism or even theft of your vehicle.
Medical Payment Coverage / Personal Injury Protection
If you were to get injured in a car accident, this coverage is here to help you get back on your feet and take the burden of some of your medical bills, regardless of whether the accident was your fault or not.
Depending on where you live in our great country, this will determine which coverage you’re offered to add to your policy – medical payment coverage, also known as MedPay, or personal injury protection coverage, also known as PIP.
MedPay covers the likes of ambulance fees, X-rays, surgeries, doctors and hospital visits, nursing services and in the worst case – funeral services.
PIP covers basically the same as MedPay, except it also includes the likes of childcare expenses and a percentage of your wages lost due to your injuries.
Liability Coverage
In almost every state, you’re required to have at least some liability coverage to be a road user. When it comes to liability coverage within the car insurance sector, it’s broken into two parts – bodily injury liability and property damage liability coverage.
The bodily injury liability coverage is designed to cover the cost of medical bills if you were to injure someone who wasn’t a passenger in your car, via a car accident.
The property damage liability coverage is designed to cover the cost of any damage caused to someone’s car or personal property in the event of a car accident.
