Understanding Automobile Coverage

There are various insurance clauses in the automobile insurance policy and although this brief overview is not all inclusive, it should provide you a better understanding of the major coverages that are afforded.


Liability
The major coverage in Automobile Insurance has resulted from law suits against automobile owners who allege that the automobile owner has caused them injuries and damages as a result of their "negligence". When court decisions determine that an automobile owner is legally liable for injuries and damages to other parties, those parties are compensated by the legally liable individual, usually the automobile owner. As the owner of a automobile, should you through your "negligence" cause injuries or damages to any other parties, you can be held accountable for those damages, and hence be ordered to pay financial restitution to the injured party.

"Liability" coverage is the coverage that protects the owner of the vehicle who has caused the damages and injuries. It typically provides coverage for bodily injuries as well as property damage to property owned by others that the insured is legally liable for causing injury or damages to.


Personal Injury Protection
Depending on the state your vehicle is titled in, you may also have a coverage called "Personal Injury Protection". This Coverage pays basic medical expenses for an insured and his or her family caused by is an automobile accident. It covers loss wages and medical expenses for those residents of the household that are not excluded. The accident does not have to occur in the insured vehicle, but they are also covered should they be traveling in a taxicab or another vehicle owned by someone else.


Uninsured and Underinsured Motorist
A part of the "Liability" Insurance is called "Uninsured Motorist Coverage". This coverage indemnifies the insured for bodily injury and property damage only as a result of an accident with a legally liable uninsured motorist. The uninsured motorist may be a vehicle that has no "Liability" insurance in force, or may have inadequate limits to provide for the damages they may cause. The "Uninsured Motorist Coverage" will also provide for damages in excess of the coverage provided by the negligent owner's Liability coverage.

The following are all defined as an Uninsured Vehicle in the "Uninsured Motorist Coverage".

• 1. A vehicle with no "Liability" coverage at the time of the accident.
• 2. A vehicle with liability coverage that does not meet the minimum required by the financial responsibility law in the state with the insured’s vehicle is garaged.
• 3. A hit & run vehicle whose driver cannot be identified that strikes the named insured, a family member, a vehicle occupied by the named insured or a family member or the named insured’s covered auto.
• 4. A vehicle that has "Liability" coverage, but for which the company denies coverage or is unable to pay because of insolvency.

• Theft of the vehicle
• Theft of the tires and wheels or other parts of the vehicle. You should review the policy however, since some audio systems are not covered.
• Vandalism such as spray painting on the side of the vehicle, or tire punctures while the vehicle is parked.
• Severe weather such as hail, lightning, ice.
• Water damage from flash floods or floods in general.
• Earthquakes.
• Broken glass caused by road hazards such as rocks that fly up from the road and pit or crack the windshield.
• Damage to the vehicle caused with a tire blows out.
• Fire and Smoke Damage.
• Wind that causes a tree to fall on the vehicle.

Collision or Upset
"Collision" coverage provides for repairs that are required when damages are caused by colliding with another vehicle or another object, i.e. tree, wall, fence, etc. These damages might be extensive to the extent that your vehicle might be inoperable. Striking another vehicle while you and the other vehicle are moving can cause extensive damages. The motion at the speed of 50 mph colliding with another vehicle traveling in the opposite direction at the same speed causes the impact of striking a solid object at 100 mph.

The collision coverage reimburses for the damages to the vehicle caused by this type of accident. There will also be a deductible that the insured will need to pay first or is deducted from the benefit paid for the repairs.


Optional Coverages
There are also other optional coverage parts that can be added to the automobile policy:

• Medical Payments that provide coverage for injuries sustained by the insured driver and passengers in the vehicle. It also provides coverage if the insured is struck by a vehicle as a pedestrian.
• Towing and Road Assistance provides coverage for emergency towing of the vehicle, changing of flat tires, etc.
• Transportation Expenses for the cost of rental vehicles used as temporary vehicles.
• Recreational Vehicles to cover motorcycles and motor homes.
• Coverage for trailers that are pulled by the insured vehicle for boats, cycles, etc.