Car Insurance Coverage Basics
There is a lot to know about auto insurance in order to fully understand what you're paying for. The following information provides a quick education to help you navigate the twists, turns and choices involved in buying auto insurance.
Auto insurance includes three broad coverage categories designed to protect you from financial loss if you have an accident:
- Property coverage pays for damage to or theft of your car.
- Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
- Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
Within the three broad coverage categories listed above, an auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements.
Remember that in order for your insurance coverage to take effect, all drivers and cars must be specifically listed on your policy. You should also refer to your automobile contract for the specific terms and conditions of the coverage that you have purchased. If you have any further questions you should speak directly with an independent agent or PF Northeast Brokerage's representative.