Key Takeaways
- car insurance pays for damage you cause in an accident, and can besides pay for damage to your own car
- A full coverage policy is good one that includes comprehensive examination and collision coverage in addition to indebtedness
- When you buy a car policy policy, you choose the types and amounts of coverage you want ( we recommend buying much more than the minimal required in your state )
What ’ sulfur covered by a basic car policy policy ?
Every car policy policy is made up of multiple coverage types, all of which provide different kinds of auspices. When you buy car indemnity, you choose the coverages you want and the limits or deductibles for each. The more coverage you choose, the more protection you ’ ll have, but your rates will be higher besides .
| coverage type | What it covers |
|---|---|
| Bodily injury liability | Medical bills if you’ve injured someone in an accident |
| Property damage liability | The cost of property damage you’ve caused in an accident |
| Personal injury protection | Medical expenses for you or your passengers after an accident |
| Uninsured/underinsured motorist | The costs if you’re in an accident caused by a driver with little or no car insurance |
| Comprehensive | Damage to your car that happens when you’re not driving |
| Collision | Damage to your car after a car accident, no matter who was at fault |
What does liability insurance cover?
Liability coverage covers the costs you ’ rhenium responsible for when you cause an accident. It ’ mho made up of two parts : Bodily injury indebtedness ( BIL ), which covers the other party ’ s medical expenses after an accident, and property damage liability ( PDL ), which covers price to their car, like a smash bumper. To use liability coverage, the injured party, meaning the other driver, will file a call with your car insurance, who will work with that person to make sure their damage is paid for. ➞ Learn more about how liability coverage works
What does personal injury protection (PIP) cover?
personal injury protection ( PIP ), besides called no-fault coverage, helps cover the costs when you or any of the passengers in your car are injured in an accident. Covered medical expenses may include surgeries and X-rays, a well as bills from hospitals, alveolar consonant offices, and nurse services. Medications may besides be covered, deoxyadenosine monophosphate well as prosthetic devices and hearing aids. PIP can pay for costs even beyond your aesculapian expenses, like lost wages if you can ’ thymine knead, or even funeral expenses. PIP is required in alleged no-fault states, where drivers get compensation for injuries after a cable car accident through their own cable car policy company, as opposed to through the at-fault party ’ s cable car policy company. ➞ Learn more about how personal wound protective covering works
What does uninsured/underinsured motorist coverage cover?
Uninsured/underinsured motorist coverage covers the costs if person hits you and can ’ t cover the costs, either because they don ’ t have car insurance or because they don ’ t have enough car policy. Like liability indemnity, uninsured and underinsured motorist coverage is split into disjoined coverage for place damage and bodily injury. ➞ Learn more about how uninsured and underinsured motorist coverage works
What does comprehensive coverage cover?
comprehensive coverage covers the kinds of damage that can happen to your car that aren’t a collision. That means events out of your control, such as wrong from :
- extreme weather
- fire
- Falling objects
- Riots
- vandalism
- Animals
- larceny
Comprehensive and collision policy frequently go hand-in-hand, and together, they cover damage to your own vehicle. ➞ Learn more about how comprehensive coverage works
What does collision coverage cover?
Collision coverage covers damage to your car from a collision, no count who was at blame. That includes damage from :
- Crashing into another car
- Running into a stationary aim, like a tree
- Driving over a pothole
➞ Learn more about how collision coverage works
What does gap insurance cover?
When your car is stolen or destroyed, your car insurance will pay for the actual cash rate of your car. If you loan or lease your car, and it ’ s totaled in an accident, you could end up owing more on your loan or lease than your car ’ south depreciated value. Gap insurance pays out the difference between the car ’ s actual cash prize and the come you still owe on the lease or loanword. ➞ Learn more about how opening insurance works
What about additional coverage options?
In addition to the standard coverage that makes up a wax coverage policy, most major car policy companies offer a diverseness of extra coverage options. Those may include :
- wayside aid : When you ’ re stranded on the side of the road, wayside aid can cover hand brake services, like a flat-tire change, jump begin, locksmith, or towing. Your policy may mechanically include wayside aid if you have comp and collision coverage, but if it doesn ’ thyroxine, you can normally add it for $ 5- $ 15 per fomite .
- New car replacement coverage : When your cable car is stolen or destroyed, your car insurance will cover a substitution up to the actual cash value of your car. New car substitute coverage pays to replace your totaled car with one of a similar make and model, but it ’ s normally only available if your cable car is less than two years honest-to-god .
- rental reimbursement coverage : When your car is being repaired in a shop, rental reimbursement coverage can pay for a rental car in the interim. lease reimbursement normally has a per-day limit and a total specify .
➞ Learn more about how to figure out how much car insurance you need
What does cable car insurance not cover ?
Your car insurance policy will tell you what kinds of accidents and damage are covered deoxyadenosine monophosphate well as what isn ’ deoxythymidine monophosphate. Car insurance typically doesn ’ metric ton blanket :
- regular repairs : Repairs that result from regular wear and tear and maintenance issues are not covered, so act petroleum changes or a leaky radiator wouldn ’ deoxythymidine monophosphate be covered by cable car indemnity .
- Ridesharing : Some policies may differ, but your car policy policy may exclude claims for damage caused while driving for fares. For that, you ’ ll want to speak to your insurance company about adding rideshare coverage .
- price that exceeds your coverage limits : When you purchase car insurance, you ’ ll choose how much of each coverage you want. Your car insurance company is obligated to cover you up to your liability limits, but damage that exceeds that total will not be covered .
- exotic and operation cars : exotic, performance, and vintage cars that are expensive to replace or animate are broadly not by criterion car insurance companies. Check with your insurance company to see whether you can get coverage for your Lamborghini, but you may find you have to shop at forte insurers and get a break policy wholly .
- certain perils : Some causes of damage are not covered, including intentional damage, wrong from street racing or damage from acts of war .
- Excluded drivers : Drivers who are specifically excluded from your coverage in your policy will not be covered if they get into an accident while driving your car. This is besides dependable for drivers who have not been given license to drive your car .
Frequently Asked Questions
Can I file an insurance claim if I damage my own car?
arsenic long as you have collision coverage, you can file a call for repairs to your own vehicle after an accident you caused. Collision coverage will pay to repair or replace your car up to the total it ’ mho worth, and you normally need to pay a deductible before your coverage can kick in.
Will my insurance go up after a claim?
Yes, your car policy rates may go up after a claim. At-fault accidents are about guaranteed to raise your rates, but your policy can even go up for a not-at-fault claim. If you find out your rates are going up because of a claim, it might be a good time to reshop your car policy and see if you can find more low-cost coverage somewhere else .
Should I pay for a car accident out of pocket or let insurance pay?
Whether or not you should pay out-of-pocket for an accident depends on how much the damage costs to repair and whether anyone else was involved. Filing a claim can cause your rates to rise, sol if the cost of fixing the price to your own car is less than or equal to your deductible, then you shouldn ’ thymine file a claim and risk raising your rates. But if another driver was involved in the accident, you should constantly alert your policy companies — the early car may have more damage than is visible at the scene of the accident, or the driver may have an injury that isn ’ metric ton apparent until later .