Erlanger Group Insurance
When it comes to automobile accidents, the same amount of money that is required for medical expenses and repairs can be substantial. Auto insurance helps with this issue. In fact, many states require a minimum amount of coverage in order to drive legally on the road. Although there is a minimum requirement under state laws, multiple types of insurance are available.
Liability insurance, also known as basic coverage, is often the minimum coverage required by state laws. This insurance covers the cost of property repair if an accident occurs and it is determined that the policyholder is at fault. It also covers the medical expenses of the other party. Any amounts that exceed the maximums of the policy are to be paid by the policyholder, usually determined following a lawsuit.
Collision coverage is a type of insurance that pays for the repair of the policy holder’s vehicle if an accident occurs, even if the policy holder is at fault. Under this type of insurance, if the total repair costs more than the value of the vehicle, the damaged vehicle is totaled out. This means the insurance company pays the policyholder the value of the vehicle.
When complete coverage is needed, including protection from damage due to theft or nature, comprehensive insurance may be best. This insurance covers damages that liability and collision policies do not, such as flood damage and theft. If a car is financed, the financing companies often require this coverage.
Underinsured and uninsured motorist policies are usually combined together and added to another type of coverage, such as liability. They are designed to provide protection when an accident occurs and the other party is underinsured or uninsured and there is a lack of coverage for damages.
Personal injury coverage, also known as bodily injury liability, is an add-on auto insurance policy. It is designed to cover the medical expenses of the policyholder and passengers if an accident occurs. This insurance provides coverage regardless of who is at fault. It is not available in all states as an add-on. Some states require this coverage as a part of liability insurance.