Auto Insurance - Buying

Collision, liability, comprehensive… what does it mean?

It is important to understand your policy… Here are some ideas you need to know about automobile insurance policies and the coverage offered.

Most people know something about automobile insurance, but many don't understand all parts of an automobile insurance policy. Here are some things you may need to know.

Bodily injury liability coverage…

Designed to provide money to pay claims against you and for the cost of your legal defense if your car injures or kills another person.

Property damage liability…

Provides money to pay claims for damage by your car to various types of property. This will also provide money for your legal fees if you are involved in a lawsuit as a result of a liability insurance claim.

Both types of liability protection provide coverage for you (and your car) as long as you drive your car or your car is driven by members of your family or others who drive with your permission. This coverage also applies to you and your immediate family when driving another person's car with permission.

Medical payments insurance…

Provided through auto insurance companies pays for medical expenses resulting from accidental injuries. Medical payments cover you, members of your family and guests in your car. Medical payments also would be made if you were walking or riding a bicycle and were hit by a car.

Collision insurance…

Pays for damage to your car resulting from a collision or from a car overturning. You can collect regardless of who was at fault in the accident. If the other driver appears at fault, however, your insurance company may collect from the other insurance company.

Comprehensive physical damage insurance…

This pays for damage when your car is stolen or damaged by fire, flood, hail or other perils such as a rock breaking a windshield. It doesn't pay for damage done when you are in a collision.

For more information on buying auto insurance, contact your local county Extension office.