What Your Auto Insurance Actually Covers

February 12, 2019
auto insurance

Know Your Auto Insurance Policy

Who: your policy covers you, the members of your household, and usually anyone else you give permission to drive the car.

Others: Liability insurance

Liability insurance pays for damage and injuries you or your car cause to others in accidents.

Two parts:

  • (BI) Bodily injury liability pays the medical, lost wages and pain and suffering of others who are injured by you or your car.
  • (PD) Property damage liability pays to repair or replace another’s car or other damaged property, like a mailbox.

How much: The amount of liability coverage is expressed as three numbers, such as 100/300/50. Here’s how to translate that as up to:

  • $100,000 bodily injury per person
  • $300,000 bodily injury per accident
  • $50,000 property damage

Med pay (MPC) is medical payments insurance and pays medical cost usually dollar for dollar for anyone inside your vehicle, regardless of fault.

UM: Uninsured or underinsured motorist coverage

Pays your medical expenses, lost wages and pain and suffering exactly as if it were being handled by the at fault driver’s liability insurance but that driver is uninsured. This includes underinsured motorist (UIM) coverage that pays out if the other driver doesn’t have enough liability insurance to pay all your damages.  The coverage kicks in once the costs exceed the other driver’s liability limits.

Collision coverage:

While liability insurance pays to repair others’ cars, collision and comprehensive insurance pays to fix your car or reimburse you for its current value if it’s totaled. Collision insurance pays out if your car crashes into an object or another car or if it flips over.

Comprehensive insurance pays out if your car is stolen, or damaged by anything other than car accidents. That includes damage from vandalism, theft, storms, floods, falling objects, explosions, earthquakes, hitting a deer etc.

Other coverages can include:

  • Special glass coverage, which pays to repair or replace chipped or broken window glass, without any deductible.
  • Rental reimbursement, which pays a set amount for a rental car if your car is in the shop following a covered collision or comprehensive claim.

Roadside assistance or towing insurance, which provides help if you need a battery jump, flat tire changed or tow to a repair shop after a mechanical breakdown. AAA membership will do this as well.

Mr. Peel seeks justice for those injured in motorcycle, truck and car accidents, disability and medical malpractice. He often addresses churches, clubs and groups without charge. Mr. Peel may be reached through PeelLawFirm.com wherein other articles may be accessed.

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