You are probably aware that you are legally required to have auto insurance to be out on the roads, but you might not know exactly what that insurance is covering. Many people are surprised by how much coverage their insurer can actually provide for them if an automobile incident were to happen. Here are some of the specific things your car insurance can cover. While not every policy covers all of these things, they are available should you want the additional support and peace of mind.
Personal injury
Most car insurance policies will cover the cost of your medical bills and any other related expenses if you or someone in your car are hurt in an accident. For example, this form of insurance can cover your lost wages while you are in the hospital, and it can even cover funeral expenses if you were to die in an accident.
Liability
Liability coverage is the coverage that is legally required in most states. This covers the costs incurred if you hurt someone or damage their property with your car. This type of coverage is essential, because even the best drivers in the world make mistakes, and you could end up with a huge amount of debt if you make a mistake on the road and don’t have the money to cover it.
Vandalism and theft
You can also opt to purchase extra insurance to cover the cost of your car if it is damaged or stolen. This will cover the damage to your car in an accident, as well as any damage from vandalism. It will also pay for the value of your car if it is stolen. If your car has depreciated in value from when you first purchased it, you can also opt for gap insurance, which gives you a payout for the car’s initial value instead of its current value.
Uninsured coverage
This type of insurance covers you if you are in an accident with someone who doesn’t have the liability insurance to pay for your medical care and repair bills. Although there are legal requirements about the car insurance you are supposed to have, many people don’t adhere to them, so this type of insurance may be a worthwhile investment.
