Automobile insurance is a contract between a policyholder and an insurance company to cover losses that may arise from using or operating an automobile. An automobile insurance is not required but most states require drivers to acquire one. Having an automobile insurance is necessary to help protect yourself and your family from potential lawsuits and financial loss.

Different Types of Automobile Insurance Coverage

A policyholder has the option to choose among a variety of options available when buying an automobile insurance. The types of automobile insurance coverage include:

• Automobile Collision Insurance- covers property damage to your automobile caused by an accident and subject to deductible. This coverage is designed to provide payments for the repair or replacement of the damaged automobile after a car accident. Fault is not an issue.
• Comprehensive Insurance – provides coverage for damages to or loss of a vehicle by an incident that is not caused by a collision accident and is subject to deductible. This may include theft, fire, explosion, hail, wind, or flood. It does not cover any loss or damage due to any mechanical or electrical breakdown, wear and tear or injuries from drunk driving.
• Liability Insurance – covers damage to another person’s car or medical injuries suffered by others as a result of an accident with you. This coverage pays for the medical costs, lost wages, personal injury and property damages to other parties.
• Medical Coverage – this pays for medical expenses of your personal injury directly related to an automobile accident, regardless of who was at fault.
• Personal Injury Protection – this covers the medical costs of the driver, regardless of who was at fault in the accident.
• Rental Reimbursement –this covers the cost of a rented car while your car is still being repaired after an automobile accident.
• Under-insured or Uninsured Motorist – this covers automobile damages and bodily injuries to the insured driver with someone who caused the accident and that someone lacks sufficient coverage or has no coverage at all.

It is important to choose a policy that meets your personal and financial needs, and also choosing a company that will compensate you properly in the event of an accident.

For more information about auto insurance policies, visit the website Ned Kimmelman. Serving clients in South Florida.

Please note that this article is not intended as legal advice.