What is Covered in a Basic Auto Insurance Policy?

What is Covered in a Basic Auto Insurance Policy?

Types of Coverage You Should Expect to Have

When you purchase your first car, or buy a new one, the next step is getting car insurance. If you plan on choosing a basic policy, there are certain coverages that policy should include. We’ll take a look at some of them here.

A Word about Deductibles

When you buy insurance, you will have a deductible that can range from $300 to $1,000. Remember, the higher your deductible, the lower your premium. You should, of course, choose a deductible that best fits your budget.

Comprehensive Coverage

This type of coverage will reimburse you for loss of your vehicle. The circumstances may include theft, fire, earthquake, falling objects, floods, even severe damage caused by animals or riots. Many people don’t know it, but this coverage also takes care of a cracked windshield, too.

Personal Injury Protection

This is the one most drivers are concerned with when they get into an accident. Personal Injury will cover your medical costs, including any lost wages while you are in the hospital after an accident. It will also cover the passengers in the policyholder’s car at the time of the accident. If necessary, it will even cover funeral costs.

Bodily Injury Liability

This is the next most important one if you are involved in an accident. Bodily Injury will pay the cost if you are responsible for injuring someone else in an accident. It’s always a good idea to get more of this type of coverage than what your state requires, in case the injured party decides to sue you. Legal costs can be devastating if you don’t have enough of this kind of coverage.

Collision

This coverage pays for the cost of repairing damage to your car after you collide with another car. If the accident is your fault, your insurance company will reimburse you for any repair costs after the deductible. If it is not your fault, your insurance company may try to get back the money they paid you from the other driver’s insurance company. If they are successful, you may also be reimbursed for the deductible. This deductible can range anywhere from $250 to $1,000.  Did you know that Collision coverage will also cover repair costs from damage caused by driving over potholes?

Uninsured and Underinsured Motorist Coverage

If someone hits you and they are not insured or don’t have enough insurance to cover a total loss, and the accident is their fault, this coverage will reimburse you for the cost. It also covers you if there is a hit-and-run driver OR if you get hit by a car as a pedestrian.

Property Damage Liability

This will cover any damage you cause to another car or structure, including a telephone pole, fence, house, etc. It will also cover you if someone is driving your car with your permission.

At Zawada Insurance Agency, we’ll help you shop around to find the best deals on car, home, and other types of insurance—including bundling, if it helps you to save more.

Please contact Zawada Insurance Agency for details.

Zawada Insurance Agency, Inc. is a family-owned and operated independent insurance agency, located in Worcester, Massachusetts, serving central Massachusetts and beyond.