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Auto Insurance 101: Understanding the Basics of Coverage

Auto insurance is a legal requirement in most states, and for good reasons. Accidents happen, and they can be costly. That’s why it’s important to have insurance coverage to protect you financially in the event of an accident. But with so many auto insurance options available, it can be overwhelming to figure out what type of coverage you need.

Today, we’ll discuss the basics of auto insurance coverage to help you understand what options are available to you:

1. Liability Coverage

Liability coverage is the most basic type of auto insurance coverage and is required by law in most states. It covers damage to other people’s property and injuries they sustain in an accident where you are at fault. Liability coverage has two components: bodily injury and property damage.

Bodily injury liability coverage pays for medical expenses, lost wages, pain and suffering, and other damages that result from injuries sustained in the accident. Property damage liability coverage pays for repairs or replacement of the other driver’s vehicle or other property that was damaged in the accident.

2. Collision Coverage

Collision coverage pays for damage to your own vehicle in an accident, regardless of who is at fault. This coverage is optional, but if you have a loan or lease on your vehicle, your lender may require it. Collision coverage has a deductible, which is the amount you pay out of pocket before your insurance company pays for the rest of the repair costs.

3. Comprehensive Coverage

Opposite to collision coverage, comprehensive coverage covers damage to your car that is not caused by an accident. This includes damage caused by theft, vandalism, natural disasters, or hitting an animal. However, like collision coverage, you will need to pay a deductible before the insurance company covers the cost of repairs.

4. Uninsured/Underinsured Motorist Coverage

Uninsured/underinsured motorist coverage provides financial protection if you are in an accident with a driver who does not have adequate insurance or any at all. This coverage is optional in many states but is mandated in some. It covers the costs of any injuries or damages you sustain as a result of the accident.

5. Personal Injury Protection (PIP)

Personal injury protection (PIP) pays for medical expenses and lost wages for you and your passengers, regardless of who is at fault in the accident. PIP coverage is required in some no-fault states and is optional in others.

6. Roadside Assistance

Roadside assistance coverage is an optional service that can be added to a comprehensive car insurance policy. It provides help if your car breaks down, such as towing, jump-starts, and lockout assistance. This can help you get back on the road quickly and safely.

7. Rental Reimbursement

Finally, rental reimbursement coverage is an optional addition to a car insurance policy that will cover the cost of renting a car while your own car is being fixed after an accident. This coverage can be useful if you need to get around while your car is in the shop.

Final Thoughts

Auto insurance coverage can be complex, but it’s important to understand the basics to ensure you have the right amount of protection in place. That said, when shopping for auto insurance, be sure to compare policies from multiple providers to find the coverage that best meets your needs and budget. And don’t forget to ask about discounts for things like safe driving, multiple policies, and good grades if you have a student driver. With the right coverage in place, you can drive with confidence, knowing you are protected financially in the event of an accident!

The Tabb Insurance Agency offers various insurance plans and quality services to help meet personal and business needs. If you are looking for car insurance in Conyers, GA, reach out to us today and get started.