Your car insurance policy is like your car – an assembly of combined parts.

Each part in your car serves a distinct purpose.  The same is true with your car insurance policy; each coverage serves a purpose.

You buy insurance for protection.  Insurance protects you and your property in the event of an accident or incident.

Your car insurance policy is designed with some coverages that serve to protect you and your property and some coverages protect the other party and their property.

Break Down Of Your Car Insurance Policy:

Insurance Coverages Protecting You:

  • Comprehensive:  This coverage repairs your property.  Comprehensive coverages pay for damages to your car when it gets damaged by someone scraping a key along it, you hit a deer, a shopping cart hits your car, a windshield gets cracked.
  • Collision:   This coverage repairs your property.  In the event that you collide with another car or other moving or non-moving object collision coverage is used.  A non-moving object would be a wall, a sign or a fence.
  • Medical Payments:   This coverage repairs your body.   If you get injured in a car accident, medical payment coverage will pay for your medical bills.  This coverage has a limit and your medical bills will be paid for up to that policy limit.
  • Uninsured/Underinsured Motorist Coverage:  This coverage kicks in if the other party that is involved in the accident does not have any car insurance or not enough.

Insurance Coverages Protecting The Other Party:

  • Liability Coverage:  The liability coverage within your car ins policy pays for damages to the other persons car and body if you are found at fault for the accident.
  • Liability coverage pays for damages up to and not beyond the limits stated in the declaration page of your car ins policy. The insurance company has fulfilled their obligation by paying up to those stated limits with in the policy.

Small But Very Important Detail :

  • Sometimes the smallest unknown detail of your car ins policy can be the most important detail.  A detail often misunderstood or unknown is that “insurance follows the car”.
  • If you lend your car to your neighbor and he/she has an at fault accident – – – the claims falls under your policy not your neighbors’. Small detail – – – big impact to you.

In the long run it’s in your best interest to understand your car ins policy.   It’s even better if you understand the coverages within the policy before you need to use it.

Take the time to set an appointment with your car insurance agent to review your policy and coverages; you will be glad you did.