What is Auto Insurance Coverage? Auto accidents can happen – even to the best drivers. Insurance can help cover repairs to your vehicle and medical costs. This is for cases in which the at-fault driver has insufficient insurance. Bodily injury liability coverage – pays for bodily injury or death resulting from an accident for which you are at fault and provides you with a legal defense.Have you ever compared insurance rates with a friend or a family member only to discover your premiums are different? Learn more about how your insurance premiums are determined by viewing this video. Why Do You Need Auto Insurance? It is an agreement between you and your insurer in which you pay the insurance company a certain amount of money and, in return, the company will protect you from major financial losses due to an accident for a given period of time.Collision coverage – pays for damage to your car when it hits or is hit by another object. What are the coverages?Medical payments, no-fault or personal injury coverage – usually pays for the medical expenses of the driver and passengers in your car incurred as a result of a covered accident regardless of fault. Property damage liability coverage – provides you with protection if your car accidentally damages another person’s property. It also provides you with a legal defense. Comprehensive physical damage coverage – pays for damage to your car from theft, vandalism, flood, fire, and other covered perils.Uninsured motorist coverage – pays for your injuries and, in some circumstances, certain property damage caused by an uninsured or a hit-and-run driver. In some cases, underinsured motorist coverage is also included.

An auto insurance policy is a package of several primary coverages. The coverages may vary depending on the state where you live. Your premium payment is the total of these separate coverages for a given period of time. Insurance is your firewall against economic disaster should you cause an accident and there is property damage or injuries to other people.