Components Of An Auto Insurance Policy

Your auto insurance policy can consist of six parts. Bodily injury covers the damage that the policy holder causes to another party in a car insurance accident. Medical payments or PIP is the part of a policy that pays for the injuries that occur to the driver and other people riding in the policyholder’s car. Property damage liability is the component of a policy which covers the destruction of another’s property. In a car accident, this usually is the other driver’s car. This coverage also applies to other property an individual damages in a car accident. The collision section of your policy refers to damage to the policyholder’s car from a collision with another car or object. Comprehensive coverage is the segment of a policy that will reimburse an insured for losses caused from theft or damage resulting from something other than a collision. This would include things such as damage caused by weather conditions or a collision with an animal. Uninsured or underinsured coverage is another piece of a policy. This coverage will pay for the damage to your auto if you are hit by an uninsured or underinsured driver who is at fault.

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