What Does A Basic Vehicle Coverage Policy Deal With? Top 4 Items

When searching for auto insurance policies, you will notice that there are many packages in the market. However, even though you will have many packages to choose from, you should choose the basic types before considering the additional options. Here are the basic types of auto policies.

Bodily Injury

This is the most common form of an auto policy. It applies to those injuries you cause to another person while driving. It also applies in the case where you or any other person listed on the policy drives another person's car with authorization. It is important to note that the medical expenses and repair costs might exceed the minimum liability limit. Therefore, you should purchase more than the set minimum to avoid breaking the bank to pay these expenses.

Personal Injury Protection (PIP)

If your automobile is involved in a fatal accident, there is a high chance that you and others on board will get injured or even die. The PIP policy comes in handy to cover the medical expenses of those injured as long as they are in the policyholder's car. It will also cover the lost wages and funeral expenses of the auto accident victims.

Property Damage

While driving, your automobile can hit fences, buildings, telephone poles, or any structures along the road. If you cause damage to another person's property, this policy will pay for the repairs. This also applies in the case where you give someone authorization to drive your vehicle and they destroy another person's property.

Collision

This type of policy protects you from unnecessary repair expenses if your car gets damaged after colliding with another vehicle. It also applies in the case where the car gets damaged after hitting a telephone pole, tree, or pothole. You will be compensated for the auto repair expenses if you are responsible for causing the collision. If another party is at fault, the insurer will try to recover the amount used to repair the car from the insurance firm of the at-fault party.

If you want to be adequately protected against injuries and damages, you need to ensure that your auto insurance covers these basic items. You should talk to your insurer about the best policy that will provide adequate protection to avoid unnecessary medical and repair costs. This way, you will always be confident knowing you and other road users are well protected.

Contact a company like Mike Pierce Insurance for more information.