Auto Insurance Coverage
General liability – If you are in an accident that is your fault, the
liability component of your policy pays for your responsibility of any injury
and property damages to another vehicle(s) and the people in those vehicles.
This is a must because the other people are almost guaranteed to try to recoup
the costs of the accident, and it is gong to be difficult to pay $100,000
for serious injury or $15,000 to replace a car. Most states require this
coverage at a minimum.
Collision – This covers damages to your vehicle in an accident. You
may or may not want to carry this. If you are driving a car that is only
worth $500, and you have a minimum deductible of $250 and have to pay $300
a year in premium payments, it may not be worth it.
Comprehensive – This covers damages to your vehicle which are not related
to a collision such as fire, theft, vandalism, natural disaster. Like collision,
you will want to carefully consider whether it is worth carrying this type
of insurance.
Medical payments – Provides coverage for expenses related to an injury
in vehicular accident. Whether you or any member of your family is driving
a car, riding in another person's car, walking, or biking, this coverage
provides money for medical expenses. Expanded coverage can provide money
for lost wages and payment for child care.
Uninsured motorists – Covers your injuries if you are hit by a driver with no auto insurance or insufficient insurance.
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