What does a basic auto insurance policy cover?

To get a proper coverage, understanding automobile insurance is very important. Your basic state auto insurance policy covers the following:

Bodily Injury Liability : This means that if the driver or the policyholder or the policy holder's family member caused any bodily injury to someone else, this coverage would protect.


Personal Injury Protection (PIP) : If the passengers and driver of the policy holder's car happen to be injured, this policy covers the cost of treatment and may also cover lost wages, cost of replacing services and funeral costs.


Liability for Property Damage : If you or someone driving your car with your permission damages another person's property, this policy provides coverage. It also covers damage to lamp posts, telephone poles or any other structure hit by your car.


Collision coverage : This policy provides coverage for damage to your (policy holder) car as a result of collision with another automobile or any other object. There is generally a deductible. Even if you are at fault in an accident, this policy will cover the repairing cost of your car minus the deductible. If you are not at fault, then your insurance provider will try to recover the cost from the faulty driver's insurance company.


Comprehensive Coverage : If you suffer a loss due to theft or a damage caused by something other than collision with another car, like fire, explosion, earthquake, windstorm, and the like then this policy provides coverage. This policy is also available with a certain amount of deductible.


Uninsured/Underinsured Motorist Coverage : If an uninsured or underinsured or a hit-and-run driver hits you or your family member, this policy will reimburse the cost of damage. This usually happens when people go for cheap motor insurance. You will also be protected if you are hit as a pedestrian.