What is Covered by a Basic Auto Insurance Policy?

August 27, 2018

Although basic car insurance coverage may differ slightly from state to state, most basic car policies consist of six types of coverage. Keep in mind that each type of coverage is priced separately. This means there is variability in policy limits and pricing.

  • Bodily Injury¬†Liability
    This coverage applies to injuries that the driver causes to someone else. This coverage extends to family members listed on the policy when driving the policyholder’s car with permission. It is important to have enough liability coverage because you may be sued for a large amount of money if you are involved in a¬† serious accident.
  • Personal Injury Protection
    This coverage pays for costs of injuries to the driver and passengers of the policyholder’s car. Personal Injury Protection is also known as PIP and can cover medical payments, lost wages, funeral costs, and cost of replacing services performed by someone injured in an accident.
  • Property Damage Liability
    This coverage pays for damage that the driver causes to someone else’s property. Generally, this refers to damage to someone else’s car, but can also covers damage to fences, telephone poles, lamp posts, buildings or other structures your car hit.
  • Collision
    This coverage pays for damage to your car as a result of a collision with another car or object such as a tree or telephone pole. It also covers damage to your car as a result of flipping over as well as damage caused by potholes. This coverage is usually sold with a separate deductible. Even if you are at fault for the accident, your coverage will reimburse you for the costs of repairing your car (minus the deductible).
  • Comprehensive
    This coverage reimburses you for loss due to theft or damage caused by something other than a collision. This includes events such as fire, earthquake, vandalism, falling objects, explosion or contact/collisions with animals like birds or deer. It can also pay to repair your windshield if it is cracked or shattered. This coverage is usually sold with a separate deductible.
  • Uninsured/Under-insured motorist
    This coverage reimburses the driver if he/she is hit by an uninsured driver or a driver without sufficient insurance to pay for your total loss. It can also provide protection in the event of a hit-and run or if you are hit by an uninsured/under-insured motorist as a pedestrian.

Other Coverage Options

Beyond the basic, here are some other coverage options to consider:

  • Roadside Assistance
    This coverage help drivers when their car breaks down or stops running due to non-accident related events. This coverage can cover towing, winching services, battery jump-starts, fuel delivery, tire changes, locksmith services, on scene labor, and more depending on the terms of your policy.
  • Car Rental
    This coverage provides a coverage for costs of renting a car when your vehicle is being repaired as a result of a covered loss. There will usually be a predetermined dollar amount listed in the policy that the insurance company will cover. Keep in mind that car rental coverage does NOT cover mechanical maintenance repairs or the cost of a rental car if you are going on vacation.

Contact Us!

At Jessica Liu Insurance we want to ensure that you understand your coverage and insurance needs. Have any questions about your car insurance policy or coverage options? Don’t hesitate to contact us – just give us a call at 415-386-2283 or send us a message at [email protected]!