With so many different coverages, it’s hard to know what’s right for you. Understanding the different types of coverages can help you find the right car insurance policy for your needs and budget. In this article, we will discuss the various types of auto insurance coverage to help you make informed decisions.
Liability Coverage
Liability coverage is a must-have for every driver. It pays for property damage and injuries to another person caused by an accident in which you’re at fault. This coverage is required by most states to legally drive your vehicle.
Liability coverage offers the following benefits:
- Covers bodily injury and medical expenses for others if you’re at fault in an accident.
- Provides financial protection by covering property damage you cause in an accident.
- Helps with legal expenses if you’re sued due to an accident covered by your policy.
Medical Coverage
Medical payments or personal injury protection (PIP) coverage applies to you, your relatives living in your home, and passengers in your vehicle at the time of the accident. It helps pay for hospital bills, medical treatments, and related costs, including funeral expenses, regardless of who is at fault.
Physical Damage Coverages
Physical damage coverage includes two types: collision and comprehensive.
Collision coverage pays for repairs to your vehicle regardless of who is at fault in the accident.
Comprehensive coverage covers damages to your vehicle caused by incidents other than collisions, such as fire, theft, vandalism, natural disasters, and hitting an animal.
Having both collision and comprehensive coverages on your auto policy offers comprehensive protection for your vehicle.
Uninsured Motorist Coverage
Uninsured Motorist (UM) coverage comes into play if you’re injured in a car accident by an uninsured driver or a hit-and-run driver. It helps pay for your medical expenses. Underinsured Motorist (UIM) coverage is also available in some states when the at-fault driver’s insurance limits won’t cover your vehicle damages or bodily injury expenses.
Emergency Road Service
When your car breaks down, GEICO Emergency Road Service is here to help. Whether it’s a flat tire, dead battery, lockout, or the need for towing, our service will assist you. Don’t let unexpected breakdowns ruin your day; rely on our emergency road service to get you back on track.
Rental Reimbursement
If your car needs repairs due to a covered loss, rental reimbursement coverage can help pay for your rental car costs. It ensures you’re not without transportation during the repair process. By including this optional coverage on your auto policy, you’ll have financial support for rental fees, which can alleviate the burden of unexpected repairs.
Mechanical Breakdown Coverage
Mechanical breakdown coverage is available for new or leased cars that are less than 15 months old and have less than 15,000 miles. This coverage helps with repair expenses on all parts and systems, not just the specific items covered by most dealer warranties. It reduces the financial burden of unforeseen repair costs.
FAQs
Q: Are all these coverage types legally required?
A: Liability coverage is legally required in most states. However, other coverage types are optional. We recommend checking your state insurance minimums and reviewing all coverage options to make sure you have the right coverage for your specific needs.
Q: Can I modify my policy with additional coverage?
A: Yes, you can modify your policy with additional coverage. Umbrella insurance is one such option that provides an extra layer of liability coverage beyond your standard auto and home insurance policies. It helps protect your assets and covers legal costs if you’re sued for causing a major accident or injury where your existing coverage limits are exceeded.
Conclusion
Choosing the right car insurance coverage can be confusing, but it’s crucial for your financial protection and peace of mind. By understanding the various types of coverage available and their benefits, you can make informed decisions and tailor your policy to meet your needs. Whether it’s liability coverage, medical coverage, or specialized options like emergency road service or rental reimbursement, GEICO is here to help you find the right coverage for your budget and circumstances.
Start a car insurance quote with GEICO today and see how much you could save!
