Ask an Online Auto Insurance Specialist: What is an auto insurance policy?

When you buy an auto insurance policy from any of the top auto insurance companies, you are actually buying several individual coverages. Each coverage protects you against different types of losses. A brief description of the six basic auto insurance policy coverages is provided here.

Bodily Injury Liability pays for the other person’s medical expenses, rehabilitation, funeral costs, and other covered costs if you or your family are at fault in an auto accident. It also pays for settlement of lawsuits and your legal expenses.

Property Damage Liability pays when you or your family members damage other property in an accident. It pays for repair, replacement or the cash value value of the other owner’s property. It also pays for your legal expenses.

Personal Injury Protection (PIP or No-fault) pays for medical expenses, rehabilitation funeral expenses, lost wages, and in-home assistance for you and your passengers injured in an accident, regardless of who is at fault.

Uninsured/Underinsured Motorist Protection pays you or your passengers for medical, rehabilitation, and funeral costs. It also pays settlements of lawsuits resulting from an accident caused by an uninsured, underinsured or hit-and-run motorist. You and your family are covered as pedestrians or when riding your bike.

Collision pays for the repair of your car in a collision or rollover.

Comprehensive pays for damage to your auto resulting from a windstorm fire, hail, etc.

You do not have to be an auto insurance expert to access various policies from top auto insurance companies and choose the right one. Just select the one which best suits your budget and requirements.