What Does Car Insurance Cover?April 29, 2016
Even though you spend several hundreds of dollars on car insurance every year, odds are you aren’t sure what you should expect your car insurance to cover. So, what does car insurance cover? Don’t worry; we’ll help you figure out whether or not your car insurance covers a number of the most common claims.
What Will Your Car Insurance Cover?
When trying to determine if certain damages are covered by your car insurance, it can help to classify the damage. Compare.com has created a basic guide to help you answer the age old question, “Will my car insurance cover that?” Be aware that coverage levels are dependent upon your individual policy.
Was someone else injured or was another car, or other property damaged?
- This type of claim would be paid based on your liability coverage.
- Most states require a minimum amount of liability coverage, but there are no required maximum limits to how much coverage you should have.
- Look for your liability coverage amount to be expressed as something similar to 100/300/100. The first number is the amount per person injured per accident, the second is the total paid per accident, and the third is property damage from the accident. These coverage amounts will tell you the maximum amount that the insurance company would pay out for this type of claim. If you like what you see, great. If you would like more or less coverage then currently have, use a comparison site like compare.com to see how much those changes might reduce or increase your premium.
Was your car damaged by fire, water, wind, or theft?
- If yes, then you would be covered under your comprehensive coverage.
- Comprehensive is an optional coverage, so first look at your policy document to see if it lists comprehensive coverage. If it does, then you’ll typically be covered up to the total value of your vehicle.
Was my vehicle damaged as a result of an impact with another vehicle?
- If so, then this type of claim would be covered under your collision coverage.
- Collision is an optional coverage so first look at your policy document to make sure this is something that your auto insurance will cover.
- If your policy includes collision coverage, then your car is covered up to its full value. If repairs are to be made, you’ll have to pay a deductible. The amount of the deductible is listed in your policy in the portion pertaining to collision coverage.
Were you or your passengers injured?
- The medical coverage on your policy should take care of you and your passengers.
- Medical Coverage is also optional, so check your policy to see if you are covered.
What Should My Car Insurance Cover?
The list above addresses common car insurance coverage questions. If we didn’t have your answer listed here, send us an email at Contactus@compare.com. Car insurance coverage can be tricky and we are here to be a resource for unbiased information.
To better understand the individual types of coverage that make up a car insurance policy, visit our Auto Insurance Resource page to learn more.
Buying auto insurance can be a confusing and disoriented process. We want to make sure that our users can make informed choices about their car insurance, selecting from as many options as possible. Read our Auto Insurance Buying Guide to educate yourself before you start a quote.