It is of the utmost importance that one completely understand their car insurance policy in order to get the best coverage and rates available. Most states require a certain level of coverage at a minimum by all drivers on their roads, but many times packages are sold that offer higher levels of coverage at a more cost-intensive fee. Understanding what levels of coverage are being offered at their current rates entitles drivers to protection from mistakes made by other drivers and themselves in varying amounts and with different levels of financial responsibility.
Most all levels of car insurance coverage include a combination of three main parts within their policies. These parts include bodily injury, uninsured/underinsured motorist coverage and liability insurance for property damage. Bodily Injury insurance refers to the addition of protection against one’s own actions in the event of fault given to the driver. This includes the passengers in both vehicles and the other driver as well. Uninsured/underinsured motorist coverage refers to the protection added to a policy that assists in the event of a hit-and-run accident, or one where the other driver does not have adequate insurance of their own to cover one’s losses.
Liability insurance for property damage refers to the financial responsibility of a driver for the opposing vehicle in the event of an accident at one’s own fault.If one’s coverage policy is said to be 100/300/50, that would mean that bodily injury coverage is set to $100,000 per person, $300,000 per accident claim, and $50,000 in liability for property damages as a result of an accident. Some states enlist the no-fault rule, where no one party can be blamed for an accident where either side can be made financially responsible alone. In this case, both sides would be entitled to benefiting without a fault determination being required by a court of law.
Other policy additions include Medical Payment Coverage and Rental Reimbursement Coverage, which can be added at a higher rate than traditional plans. These coverage plans provide financial benefits in the event of medical need, funeral costs or replacement of rental equipment that has been damaged during an accident. Read more about the cheapest car insurance rates.