FAQs Regarding Car Insurance Coverage
When it comes to car insurance coverage, a lot of factors need to be considered. The factors like optional and mandatory car insurance coverage types, coverage limits, etc. are some of the many which make it hard for an ordinary person to understand this complicated topic.
Here are the answers to the most commonly asked questions related to car insurance coverage for your better understanding.
What types of car insurance coverages are available?
Car insurance coverages are of several types and most of them are optional, though some are mandatory by law. In most of the states, drivers are required to buy liability insurance coverage that will pay for the property damages and injuries caused by you to others during an accident. However, the damage to your own property or your injuries are not covered in it.
If you are residing in a state that has no-fault rules, you should have personal injury protection insurance. In this coverage, your insurer will pay medical expenditures incurred because of an accident, irrespective of whose fault it was.
In some special cases, your state may require you to be covered under some optional coverages, such as underinsured/uninsured motorist coverage, rental car coverage, collision coverage, labor and towing coverage, and comprehensive coverage.
What types of coverages should I have in my own state?
Different states require different coverages but most of them require you to have liability insurance (of minimum amount). In some states, like Massachusetts, you should also have PIP insurance (personal injury protection insurance).
The amount of the minimum coverage is set differently for different insurance portions by every state. For example, in California, the injury or demise of a single person by accident is covered with an amount of $15,000. If multiple people are involved, the coverage amount usually increases to $30,000 and when a property is damaged because of an accident, the coverage amount is around $5,000.
What should be my coverage limits?
Depending on the laws of the state you are living in, you should have at a bare minimum the state limits of car insurance coverage. After getting the minimum coverage as per the law, the coverage limits can be further increased for a high reimbursement potential. But if you want some extra protection, optional car insurance coverages can be added by you, such as comprehensive and collision, towing and labor, uninsured motorist, etc.
What coverages might cover my medical bills if an accident occurs?
This question can be answered after analyzing whose fault it was and which coverage you have. If you reside in a no-fault state and the accident was not your fault, your medical bills will be the responsibility of the liability coverage of the other party. In the same state, if the accident was caused because of your mistake, your medical bills will be paid through your PIP (personal injury protection) coverage if coverage is available.
But if the accident was caused by a careless driver who does not have sufficient insurance or none at all, the responsibility of medical bills will be towards uninsured motorist insurance if available. The post-accident medical bills can be paid with the medical payments coverage, irrespective of whose fault it was.
Lastly, do not forget that your medical insurance coverage may also cover your medical bills. Although, consult with your health care provider to confirm.
If my car somehow gets damaged that was not caused by an accident, what coverage might protect me?
Usually, the comprehensive car insurance pays for vehicle damages that do not occur from a qualified collision event. The comprehensive coverage mostly pays for the damages caused by weather, fire, vandalism, theft, or those caused by animal collisions.
Will I be covered if my car gets damaged or breaks down?
It completely depends on whether you have a towing and labor insurance coverage. This coverage is also known as “emergency roadside service” and pays for towing, jumps, tire changes, roadside labor, and locksmith services.
Will my auto insurance cover a rental in case my car stays in the shop?
The rental cost will be covered only if you have rental insurance coverage.
Note: To get this coverage, your auto insurance company will want you to first have the collision and comprehensive car insurance.
What might happen if I accidentally hit my own vehicle?
If you have more than one car and you somehow hit one with the other while driving, it won’t be covered by liability insurance. The coverage is limited to the damages to the other party during an accident caused by you.
However, if you have purchased the collision coverage, you might be paid for the damages caused to your car. Do not forget to review the details of this coverage by your insurer.
If I drive the car of my friend, will I be covered by my own car insurance?
Yes, you are covered. Usually, in most of the cases, the main coverage will be your buddy’s insurance. It means that your coverage can be accessed only when your friend’s policies meet all the limits. Again, double check your policy to make sure.
Who is protected by my auto insurance?
Any member of your household or anyone who is permitted to drive your car and holds a driving license is usually covered by the insurance of your car.
Note: If someone is excluded by you from the policy, they won’t be covered while using your car. This means that you will only be liable for all the damages occurred due to the accident caused by that person with your car.
Will my auto insurance coverage change if I decide to move?
Yes, it may change. The minimum requirements are different for different states, which means that you should adjust the car insurance limits and coverages. There might be a case that your auto insurance provider does not offer services in the new state. As a result, the service provider should be changed.
If you have plans to move to a new state, consult the situation with your present insurance company so that all the required adjustments can be made.
Will I be covered when driving abroad?
This totally depends on the country you are visiting. Suppose if you are driving in Canada and an accident occurs, car insurers may provide coverage in Canada. But if you prefer to drive your car in other countries, like Mexico, you will not be covered. Therefore, you will be required to buy the international car insurance.
If you are visiting another country and have plans to drive over there, you should consult your current insurance company prior to planning the trip.
When to reassess my car insurance coverage?
Whenever you find that your current coverage is inappropriate, you can reevaluate your coverage. But you should definitely reevaluate your car insurance coverage whenever you undergo major life changes. The changes may be getting married, buying a home, having a child, etc. You should also evaluate whether or not the current protection is the right one for you.
Another thing you can do once a year is get quotes and compare the prices. There are many consumers who hold an irrelevant insurance policy. If you switch your insurance service provider, you may save a lot of money.
I’ve been in an auto accident what do I do next?
After an auto accident, you may get injured severely and emotionally shattered. Things you can do involve you to stay at the scene of the accident and not leaving the sight until it is necessary or safe. This way, you can also avoid the serious hit-and-run penalties.
The next thing you should do is call the police and get the scene investigated. If any report is made, get a copy of that and note down the badge numbers and names of the responding officers.
You can also exchange information of the drivers involved, talk to the witnesses, take some pictures of the scene, and inform your insurance company. Afterwards, it is recommended to seek medical treatment if hurt then work on getting an valuation of the damaged property.
P.S. Always read your policy as policy language can be different from policy to policy. If you do not understand the policy contact your agent or carrier for clarification immediately.
