There’s no question that auto insurance is a complex and confusing topic. With so many types of coverage available, it can be hard to know what you need and what you don’t. However, understanding the basics of auto insurance is essential for every driver.
Here’s a brief overview of the most common types of coverage:
1. Liability Coverage
Liability coverage is one of the most important types of auto insurance. It helps to protect drivers if they are involved in an accident that causes property damage or injuries to another person.
Liability coverage typically includes two different types of protection: bodily injury liability and property damage liability. Bodily injury liability helps cover the other driver’s medical expenses if you are found at fault for an accident.
Property damage liability helps to pay for repairs to the other driver’s vehicle if you are found at fault. In most states, drivers must carry a minimum liability coverage to operate a vehicle legally.
2. Medical Payments Coverage
When you purchase auto insurance, you have the option to add on Medical Payments Coverage (MPC). This coverage can help to pay for medical expenses if you or a passenger in your vehicle is injured in an accident.
MPC can help to cover the cost of ambulance rides, emergency room visits, and hospital stays. It can also help pay for dental work, prosthetics, and funeral costs. In some cases, MPC can even help to cover the cost of prescriptions and therapies. While MPC is not required in all states, it is an important form of protection for anyone who owns a vehicle. If you are ever involved in an accident, having an MPC can help you get the medical care you need without financial burden.
3. Collision Coverage
Collision insurance is one of the most important types of auto insurance coverage you can have. It protects you financially if your car is damaged in a collision with another vehicle or object.
This coverage pays for repairs to your vehicle up to the actual cash value of your car, minus any deductible that you may have. For example, if your car is totaled in an accident, collision coverage will pay the actual cash value of your car minus the deductible.
4. Comprehensive Coverage
Comprehensive coverage is a type of car insurance that pays to repair or replace your vehicle if it’s damaged in an incident that’s not a collision. So, comprehensive coverage will kick in if your car is vandalized, stolen, or damaged by a natural disaster.
It’s important to note that comprehensive coverage does not cover damage caused by a collision. For that, you’ll need collision coverage. You can purchase collision and comprehensive coverage together or as separate policies. Whether or not you need comprehensive coverage depends on a variety of factors, including the value of your car and your finances.
5. Uninsured/Underinsured Motorist Coverage (UM/UIM)
UM/UIM coverage pays for your medical expenses and property damage if you’re hit by an uninsured driver or a driver who doesn’t have enough insurance to cover your damages. It also covers you if you’re the victim of a hit-and-run accident.
The coverage varies from state to state, but it’s typically available in two forms: bodily injury coverage and property damage coverage. Bodily injury coverage pays for your medical expenses, and property damage coverage pays for repairs to your car or the replacement of your car if it’s totaled.
No one ever expects to be in a car wreck, have their vehicle catch fire, or experience theft or vandalism; however, these things happen daily, and the resulting costs can be significant.
That’s where auto insurance comes in. Auto insurance is designed to help cover the costs associated with these events. In Alabama, drivers are required to carry minimum levels of liability insurance.
Responsibility comes at a price, but with Woodall & Hoggle Insurance Agency on your side, you can be sure you’re getting the best coverage for your needs at a price you can afford.
Please request a quote online or call us today!
