A Beginner’s Guide to Auto Insurance

​Just like our health, homes, businesses, and properties, cars get insurance too. And just like these types of insurance, car insurance has property, liability, and medical coverage as well. In case the car gets damaged or stolen, the property coverage pays for that. To cover for liability means to compensate for the costs of the legal charges for damage to property or bodily injury to others caused by the policyholder. For injury treatments, rehabilitation, and sometimes lost income and funeral expenses; medical coverage reimburses for that.

Below are five basic coverages offered by an auto insurance policy:

1. Bodily Injury and Property Liability
   In an accident where you’re at fault, liability insurance can cover for the costs of the following:
   - Injuries stated in the policy that the policyholder caused to another person or people (bodily injury liability)
   - Damages inflicted to another person’s property, even if the driver (with permission) is not the policyholder (property liability)
   
   
2. Personal Injury Protection (PIP)
   This coverage pays for the medical costs, lost income, and the cost of substitute services that are usually done by the injured in the car accident. Covered in this policy are the driver and the passengers of the policyholder’s car. Funeral costs are also covered.
   
   
3. Collision Accident
   Damage to your car caused when crashing to someone else’s car, an object or structure or when it flips over, can be paid for by the accident coverage. The insurance policy also covers damages caused by deep holes. If you, the policyholder is found at fault for the collision, the insurance company would compensate for the repair costs. On the other hand, if you are not at fault, the other driver’s insurance company could repay you for the damages.
   
   
4. Inclusions Coverage
   In this coverage, situations that are not necessarily related to driving are covered. These situations include car theft, fire, falling debris, natural disasters (e.g., earthquakes, windstorm, hail, flood), explosions, or damages caused by animals.
   
   
5. Uninsured and Underinsured Motorist Coverage
   This policy coverage pays for damages or losses of the policyholder, a family member, or a permitted driver, caused by the other driver who is not insured or has inadequate insurance to pay for the costs. This policy also applies and covers for when the policyholder is hit while in a pedestrian.

 
At Berlin & Denys Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (800) 946-3303 or Click Here to request a free quote.