What is covered by a basic auto Insurance Policy? Understand the Coverage for your Car

What is covered by a basic auto Insurance Policy? Understand the Coverage for your Car

Basic auto insurance is the minimum coverage you need to have on your car. It only covers you if there is an accident or damage to your vehicle. In order for basic auto insurance to cover you, it must have liability coverage, personal injury protection coverage, medical payments coverage and comprehensive coverage.

What is covered by a basic auto Insurance Policy?

A basic auto insurance policy covers you in case of an accident or theft. With a basic policy, you can be sure that your vehicle is protected against the loss of value, injury to yourself and others due to an accident, damage to other vehicles and property while parked on a public street or highway.

Auto insurance works like this: Your insurer pays for damages caused by another driver who causes an accident with your vehicle (or vice versa). If something were to happen as a result of one driver hitting another car or truck traveling down the road at high speeds, then both drivers would need coverage for their own damages from being hit by each other’s cars/trucks which might lead them into financial trouble if not covered properly under their policies!

Why do I need Auto Insurance on my car?

You might think that you don’t need auto insurance, but the truth is that even if you drive a car every day and never have an accident, there are still risks involved in owning one. For example:

  • Your car is your property. You can’t sell it without getting permission from the person who bought it from you before they gave it back to you (the dealer). If they don’t want to give up their rights over this asset, then there’s no way for either of those two parties (you and them) to agree on what should happen next with regards to how things work out between them once again after buying back their vehicle from each other again later down line; so instead we’d need some sort of legal document signed by both parties stating exactly what happens now going forward as well as any other details regarding ownership/management rights over said vehicle at all times during its existence until such time when either party decides otherwise about selling off parts made up entirely out-of-state companies located somewhere else than where actual manufacturing takes place within domestic borders where needed components come from…

Liability Coverage in a basic Auto Insurance policy

Liability Coverage is the coverage that pays for damage you cause to someone else’s property (car, house, etc.) or their bodily injury. It can also include legal defense expenses if you’re sued by someone who was injured in an accident caused by your negligence.

Liability coverage is required by law in most states and is usually the minimum amount of insurance you need to carry. You may be able to get a lower price from an insurance company if you buy it as part of your auto policy rather than separately from any other policies like home or renter’s insurance that may already be included in your monthly bill with another company like GEICO or Progressive

Liability Coverage for bodily injury

Liability Coverage for Bodily Injury (BI) is the most common coverage you’ll want to look at. It covers you if you are at fault in an accident and cause injury to another person. This includes medical costs, property damage and even legal fees associated with a lawsuit against you.

There are three types of BI coverage: bodily injury-only, comprehensive and collision. Collision coverage can be added as an extra layer of protection on top of your BI policy for more protection if there are multiple vehicles involved in an accident that results in injuries to other drivers or passengers—like when two cars crash head-on into each other side by side!

Personal Injury Protection Coverage

Personal Injury Protection (PIP) coverage is designed to help you and your passengers after an accident. It covers medical expenses, lost wages and other costs that result from the injuries you or others may receive in an accident. The limit on PIP coverage is $10,000 per person for medical expenses and $10,000 per person for lost wages.

If you have PIP coverage through your basic policy and are involved in an accident with someone else’s vehicle where no one else was injured at all, then there will be no deductible for the claim paid out by the insurer instead of going directly to them as part of their policy limits. This can save money over time if multiple claims occur within a period of time because it means less money spent upfront then later on when paying out those larger amounts due because either way both parties were going through similar treatment plans regardless of who was responsible financially first.”

Medical Payments coverage

Medical Payments coverage is another type of coverage that you can add to your policy. It covers you if someone injures or gets hurt in an accident that was your fault, up to the policy limits.

  • What is covered?
  • The injured party must have been insured by the driver’s own auto insurance policy (or they could be uninsured).
  • The injury must have occurred because of an accident between two vehicles owned by the same owner or drivers (such as a car vs. motorcycle).

Collision Coverage- Pays for the damages to your car from an accident

Collision coverage is one of the most important types of car insurance. It covers damage to your vehicle from an accident and pays for it if you are involved in an accident.

The coverage can be required or optional, depending on where you live. In some states, collision coverage is mandatory while it’s not required in others; however, no matter where you live or drive, it’s always a good idea to purchase this type of insurance if possible because without it there could be big bills later down the road!

Comprehensive Coverage -Damage to your car other than from a collision or rollover (Vandalism, Hail Damage, Flooding)

Comprehensive coverage is the most important part of your policy. It covers anything that’s not a direct result of an accident or collision, such as vandalism or hail damage.

This type of insurance will protect you against issues like:

  • Auto glass replacement (windshields and/or windows)
  • Bumper replacement if it has been damaged by weather conditions like hail or snow; this includes both front and rear bumpers.
  • Fender-to-fender paint repair costs for cars with more than one color coat on their body panels at any point in their lifetime (this doesn’t include scratches).

You’ll want to check with your agent about how much coverage you need based on what kind of car you have and where it was purchased from (i.e., if bought new vs used).

Uninsured and underinsured Motorist Coverage – This covers you when the at-fault driver has no insurance or not enough insurance to cover your medical bills or property damages.

Uninsured and underinsured Motorist Coverage – This covers you when the at-fault driver has no insurance or not enough insurance to cover your medical bills or property damages.

It can also pay for your loss of use due to injury, loss of income or other costs associated with an accident.

Knowing what is covered in a basic auto insurance policy will help you understand how your car is covered

Knowing what is covered in a basic auto insurance policy will help you understand how your car is covered.

  • Liability coverage: This covers injuries and property damage that result from an accident involving your car. It also protects other drivers involved in an accident, as well as passengers who are riding with you at the time of the collision.
  • Personal injury protection (PIP) coverage: PIP pays for medical bills, lost wages, and other expenses incurred by those injured in a car accident caused by you or another driver who has no liability coverage on their own vehicle.* Medical payments coverage: If you are injured during an accident with someone else’s insured vehicle, this pays for emergency treatment that prevents further injury.* Uninsured motorist bodily injury protection (UMBI): This pays for medical expenses resulting from being hit by someone whose insurance does not cover all expenses related to such incidents due to factors beyond their control (for example weather conditions).


When you are looking to buy a new car, the salesperson will ask “What is covered in your auto insurance policy?” It is important that you know what this means. The salesperson can only tell you what is not covered by a basic policy and not explain how it works.

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