Types of auto insurance coverage
Auto insurance provides financial protection against losses from accidents, theft, and other damages involving a vehicle. Holbrook Insurance Center Inc. provides auto insurance in Laconia, Quincy, MA, Weymouth, Tilton, NH, Braintree, Hingham, and surrounding areas.
There are several main types of auto insurance coverage, each serving a specific purpose:
- Liability Coverage:
Liability insurance is required in most states and covers costs if you are at fault in an accident. It has two parts: bodily injury liability, which pays for medical expenses, lost wages, and legal fees of others injured in an accident you caused, and property damage liability, which covers repair or replacement costs for the other person’s vehicle or property. However, it does not cover your own injuries or vehicle damage.
- Collision Coverage:
Collision insurance pays for repairs or replacement of your vehicle if it’s damaged in a collision with another vehicle or object, regardless of who is at fault. It typically requires you to pay a deductible before the insurance kicks in. Collision coverage is especially important for newer or more valuable cars but may not be cost-effective for older vehicles.
- Comprehensive Coverage:
Comprehensive coverage protects against non-collision events such as theft, vandalism, fire, floods, falling objects, or damage from animals. Like collision insurance, it also requires a deductible. Comprehensive coverage ensures broader protection beyond typical accidents.
- Uninsured and Underinsured Motorist Coverage:
This coverage protects you if you’re involved in an accident with a driver who has no insurance or insufficient coverage. It pays for your medical expenses, lost wages, and sometimes vehicle damage. It’s particularly valuable since many drivers lack adequate insurance.
- Personal Injury Protection (PIP) or Medical Payments Coverage:
Depending on your state, you may have PIP or MedPay, which covers medical costs for you and your passengers after an accident, regardless of fault.
Together, these types of coverage form a well-rounded auto insurance policy that safeguards against financial loss and provides peace of mind on the road. Let’s have a conversation! Feel free to contact us.
