What are different types of coverages in Personal Auto Application and their purpose?

24.03.2021
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Personal auto insurance application helps in providing financial protection to you, your family, other passengers, and your vehicle. You can choose the amount of protection by Selection of coverages and limits.

Six common auto coverages are:

  • Auto Liability coverage
  • Uninsured and Underinsured Motor coverage
  • Comprehensive coverage
  • Collision coverage
  • Medical Payments coverage
  • Bodily Injury Protection

Depending on the state where you live, some of these coverages are mandatory and some are optional.

Liability coverage: Liability coverage is mandatory in most US states as a legal requirement to drive a car. Liability coverage has two components:

  • Bodily Injury Liability may help pay costs related to another person’s injuries if you are responsible for an accident.
  • Property Damage Liability may help pay for damage you cause to another person’s property while driving.

Collision Coverage: Collision coverage pays for your own vehicle or property in terms of replacing or repairing your property. This can include damage to your property caused by a collision with another vehicle or a stationary object like a tree or fence or as a result of flipping over.
Collision coverage may be optional but may be required by your vehicle’s leaseholder or lender.

Comprehensive Coverage: Comprehensive reimburses you for loss, theft, or damage to your vehicle caused by something other than collision. For example, Comprehensive coverage can include fire damage, damage from hail, other falling objects or collision with animals, explosions, earthquakes, riots, floods, vandalism, etc.

Uninsured and Underinsured Motorist Coverage:

  • Uninsured Motorist Coverage may help compensate you (policyholder) for your injuries or your property damage caused due to an accident with a driver who has no insurance at all.
  • Underinsured Motorist Coverage may help compensate you for your injuries or property damage caused due to an accident with a driver who doesn’t have sufficient insurance.

Medical Payment Coverage: This coverage pays for the injuries of the driver, family members, and other passengers of your (Policyholder) car. It can cover expenses for medical payments, lost wages, hospital visits, surgery, X-rays. It may also cover funeral costs.
It is mandatory in some US states and optional in others.

Medical Payment Coverage: This coverage pays for the injuries of the driver, family members, and other passengers of your (Policyholder) car. It can cover expenses for medical payments, lost wages, hospital visits, surgery, X-rays. It may also cover funeral costs.
It is mandatory in some US states and optional in others.

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