From a financial risk standpoint, the most dangerous thing you do every day is getting into your car and leaving your home. Statistically, auto insurance is the most common form of insurance to have a claim with. The sheer volume of cars on the road inherently makes the numbers go up, but with the added distractions of drivers’ texting habits, making phone calls, updating Facebook or eating as they drive, the risk continues to increase. This risk is why auto insurance is so important and is a requirement in every state. Here is a general breakdown of the most common coverages on an auto insurance policy and how they protect consumers.
- Liability: This is the coverage that provides protection for you in case you are liable in an automobile accident. Most states consider an at-fault accident one in which you are found over 50 percent at-fault. If you have a $100,000 bodily injury limit on your auto insurance policy, it protects you up to that limit towards injuries that you may have caused. With the current costs of emergency medical care, let alone if you are sued for pain and suffering, that seemingly large amount of money can be used up in a hurry. Speak with your agent about the best coverage limit for your needs.
- Medical Payments: This is the section of the policy that helps pay your medical bills if you are injured in an accident. It pays for things such as emergency medical care, hospitals, x-rays, physical therapy, doctor visits, diagnostic tests and more. It pays not only for yourself, but also for other people in your car. Medical payments coverage does vary by state as to what is covered, but the basic principles are the same.
- Comprehensive and Collision: Comprehensive coverage is essentially damage that happens to your vehicle other than colliding with another car. Collision coverage is the section of the policy that pays when your vehicle is involved in an accident with another motor vehicle. There are three common types of collision coverages: limited, standard and broad. Those three are broken down by how and when you are required to pay your deductible. Limited means you only have collision coverage if you are not at fault in an accident. Standard means you have collision coverage subject to the deductible regardless of fault. Broad means you have collision regardless of fault in the accident, but if your vehicle is hit by someone else the deductible will not apply.
This is just a basic breakdown of some common coverages on auto insurance and how they work. Speak with an independent insurance agent to learn more about how auto insurance protects you.
We’ve got you covered. Call Pickard Insurance Agency at (817) 461-4781 for more information on Arlington auto insurance.