The maximum amount of money an Insurance Company will pay for a covered claim to the insured is known as Coverage. An insurance policy is a collection of coverages with each coverage having a limit to which the amount will be paid. Coverage tells you the extent of damage that will be taken care of by the Carrier and the limit i.e. the maximum amount that will be paid for the same. Coverage is one of the deciding factors for the premium you pay hence it becomes important for you to understand these coverages. These are a few of the coverages that fall under Personal Automobile insurance.

1. Single Limit Liability
   In this, the insurer will only pay one fixed amount for all the damage that is done. This damage can either be physical or property damage. This single amount is the maximum limit and the insurer will have to pay this amount for the damages resulting from an accident. It’s also referred to as Combined Single Limit (CSL).
2. Bodily Injury Liability
   This type of coverage covers the medical expenses of someone you hurt in an accident. This coverage pays for their medical expenses and any lost wages that are a result of the accident. Other expenses that can be covered under this liability are:
   1. Legal fees- If the other person goes to court and presses charges against you, the legal expenditure can be taken care of.
   2. Pain and suffering- The person injured can claim his pain and suffering due to the accident which can be covered under this liability.
   3. Funeral Cost- It can also cover the funeral costs if there was any fatality as a result of the accident. This coverage covers the expenditure of someone who might have got injured in an accident caused by you (bodily injury, sickness, or disease, including death).
3. Property Damage Liability
   If in an accident you are at fault, and there is damage done to someone’s vehicle or property because of that, you can claim the amount from the insurer if Property Damage is covered in your policy. This coverage pays for the repair of the damage caused to that person’s vehicle or property because of the accident. Your own vehicle’s damage costs are not covered in this.
4. Medical Payments
   This coverage helps to pay for your medical and funeral expenses after an accident. Both the driver and passengers can be covered under this. The medical expenses are paid by the insurer to the limit that is agreed upon in the policy. Medical Payments cover necessary medical, surgical, and dental services, including ambulance, hospital, nursing, and funeral services for anyone who sustains bodily injury, sickness, or disease. This coverage also covers you (and all the relatives who live in your household) if you are struck by an automobile as a pedestrian or you are injured while traveling on public transport.
5. Uninsured/ Underinsured Motorist
   If you are in an accident with an uninsured motorist, including hit-and-run automobiles, you can claim the amount from your insurer if Uninsured Motorist is covered in your policy. This coverage helps in cases where you meet with an accident with someone whose vehicle is not insured. In such a case, you will not have to bear the repair and damage expenditure if your policy covers the situation.
6. Comprehensive/OTC
   This coverage covers all the risk factors associated with your vehicle, driver, passenger, third party vehicle, or third party liabilities. This is also known as Other Than Collision (OTC). This coverage covers all the losses that are not caused by collision. It covers incidents like accident fires, theft, or natural calamities like floods, weather damage, etc.
7. Collision
   This coverage pays for the repair of your vehicle in case of an accident caused by a collision. This collision can be with another vehicle or a fence or tree. Damage to another person’s vehicle is not covered in this. If the cost of repairs is more than the current value of the vehicle, then the company pays you the current value of the vehicle.
8. ACV Unless Amount Stated
   This field is generally there in the form to know the actual cash value of your vehicle for which you are buying the insurance.
9. Towing & Labor
   It is an optional coverage that you can add to your car insurance which covers the towing or labor charges in scenarios like roadside breakdowns, dead batteries, flat tires, lockout from the vehicle, or in case of an accident.
10. Transportation Expenses/Rental Reimbursements
    This coverage is an optional coverage that pays for your transportation expenses while your vehicle is being repaired under any covered claim in your policy.