What your Auto Insurance Covers in an
Even if you are a great driver and rarely get into a car accident, it's important to know what your auto insurance policy covers; what types of insurance coverage you have, what your limits are and what happened can help determine if you're covered or not. So it's a good idea to look at your policy and know what you're buying. To help make sense of it all, let's take a look at a few scenarios and provide you with answers to each case:
Scenario #1: You're hit by an uninsured driver. Your car is severely damaged and you have serious injuries. Are you covered?
A. Only if you have Uninsured and Underinsured Motorist Bodily Injury and Property Damage Coverage.
Scenario #2: You lend your car to your friend who drives across your neighbor's lawn and does extensive property damage. Are you liable? Are you covered?
A. Yes and yes. Your car did the damage and your car insurance extends to anyone who you gave permission to drive your car. However, your coverage is subject to the Liability limits you chose.
Scenario #3: You're at fault in a chain-reaction accident that does extensive damage to three cars. A passenger in the first car that was hit suffers serious injuries, and the medical expenses are more than $100,000. Are you covered?
A. Maybe. Your Liability coverage will protect you only up to the limits you select. However, make sure to be cautious when choosing your limits. Your house, your savings and future earnings can all be used to satisfy a lawsuit against you. The more assets you have the higher your limits should be.
Scenario #4: You swerve to avoid hitting a deer in the road and hit a tree instead. Are you covered?
A. Damages to your car are covered only if you have Collision coverage. Your Medical Payments or Personal Injury Protection will cover any injuries you suffer, up to the limits you select.
Choosing the right amount of coverage is the most important decision you can make when buying insurance. While it may be tempting to try to save money by choosing less expensive coverage, making sure you're adequately protected is more of a financially sound decision.
To learn more about the different types of coverage see what is auto insurance and get an online auto insurance quote with 21st Century.
It's easy to get a free auto insurance quote and even buy a policy if you like what you see - all online at 21st.com.