Auto Insurance Explained - Four Basic Car Insurance Coverages - Velox Insurance

Personal Auto Insurance Explained!

Liability Coverage?
Collision Coverage?
Uninsured Motorist Coverage?
Medical Payments Coverage?

Velox Insurance can help you with all of it!

Purchasing auto insurance seems simple, but when you really start looking around it can feel overwhelming with all the different coverage types.

We will explain auto insurance by breaking up the four basic coverages of the standard personal auto policy:

#1 - Liability Coverage

Liability Coverage provides you the coverage you will need if you're at-fault in an automobile accident. This coverage offers two types of protection: coverage for injuries to other people and coverage for damage to someone else's property while you or a family member are operating any automobile. If you accidentally hit someone else's car and injure the other driver, your Liability Coverage would pay for the covered damages to their vehicle, and for the medical expenses related to their injuries... And yes, I said "their" injuries, not your own, which leads us to our second coverage...

#2 - Medical Payments Coverage

Since Liability Coverage only provides coverage for injuries caused to the other people involved you'll need Medical Payments Coverage to help pay medical expenses related to injuries to you or your passengers in an accident. This coverage is needed no matter who is at fault.

#3 - Uninsured Motorists Coverage

The third part of personal auto insurance is Uninsured Motorists Coverage, or UM Coverage. UM Coverage protects you if you're involved in an accident with someone who breaks the law by not carrying their own auto liability insurance. It does this by helping pay for any medical expenses you incur from getting hit by an uninsured driver. And although did not sound fair, these types of accidents do happen. According to statistics, nearly 13% of drivers on the road are uninsured, which makes protecting yourself very necessary!

Also, in many states you can purchase additional protection called Underinsured Motorists Coverage. This coverage provides you with additional protection, for when the other driver has insurance coverage, but just not enough to fully cover all your medical expenses. Now, you are likely wondering how are you going to pay for damages to your own vehicle?

This is where the fourth and final part of your auto policy comes into play...

#4 – Physical Damage Coverage

Known as Physical Damage coverage it will pay for direct and accidental loss to your vehicle.

Collision – Coverage for when your car impacts another vehicle.

Other Than Collision – Coverage for most types of other damage to vehicle, such as weather, theft, vandalism or hitting an animal. This is also referred to as “Comprehensive Coverage”.

The details of insurance can be confusing...

This video is just a quick overview of the four main parts of the standard auto insurance policy. To ask questions and learn more about the exclusions and limitations that may apply, be sure to contact your local Velox insurance agent right away!