What is Auto Insurance?
Answer:
Auto insurance does a lot more than pay for


repair or replacement of a damaged or stolen vehicle. In fact, it's the other coverage provided under an automobile policy that's really important. Car insurers provide:

Bodily Injury Liability Coverage.  Sometimes called “BI”… this coverage takes care for other people’s expenses related to medical and burial cost, lost on the job pay, disability income and pain and suffering.

Property Damage Liability.  Covers other people’s property if you damage it while driving.

Medical.  This coverage takes care of medical and funeral costs for you and your passengers.  It doesn’t matter.  Notice it’s not called “liability”.  It doesn’t matter who’s at fault.

Uninsured Motorist /Underinsured Motorist .  Takes care of you if someone with no coverage or not enough coverage causes an accident.  Provides basically the same coverage as BI… except this time it’s for you.

Comprehensive .  Pays to fix or replace your car if it’s damaged by a covered loss—but not including collision.

Collision .  Pays to fix or replace your if it’s damaged after colliding with another vehicle or object.

These are the main coverages provided by a car insurance policy.  There can be others depending on the carrier and state in which you purchase your auto insurance plan.


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