Different Types of Auto Insurance Coverage

Auto Liability Insurance

Liability coverage provides a fixed dollar amount of coverage for damages that an insured becomes legally liable to pay due to an accident or other negligence. For example, if an insured drives into a telephone pole and damages the pole, liability coverage pays for the damage to the pole. In this example, the insured also may become liable for other expenses related to damaging the telephone pole, such as loss of service claims (by the telephone company). Liability coverage is available either as a combined single limit policy or as a split limit policy:

Combined Single Limit

A combined single limit combines property damage liability coverage and bodily injury coverage under one single combined limit. For example, an insured with a combine single liability limit strikes another vehicle and injures the driver and the passenger. Payments for the damages to the other driver's car, as well as payments for injury claims for the driver and passenger, would be paid out under this same coverage.

Split Limits

A split limit liability coverage policy splits the coverages into property damage coverage and bodily injury coverage. In the example given above, payments for the other driver's vehicle would be paid out under property damage coverage, and payments for the injuries would be paid out under bodily injury coverage.

Note that bodily injury liability coverage is also usually split as well into a maximum payment per person and a maximum payment per accident.

Collision Car Insurance Coverage

Collision coverage provides coverage for an insured's vehicle that is involved in an accident, subject to a deductible. This coverage is designed to provide payments to repair the damaged vehicle, or payment of the cash value of the vehicle if it is not repairable. Collision coverage is optional. Collision Damage Waiver (CDW) is the term used by rental car companies for collision coverage.

Comprehensive Auto Insurance

Comprehensive (a.k.a. - Other Than Collision) coverage provides coverage, subject to a deductible, for an insured's vehicle that is damaged by incidents that are not considered collisions. For example, fire, theft (or attempted theft), vandalism, weather, or impacts with animals are just some types of Comprehensive losses.

Uninsured/Underinsured Auto Coverage

Uninsured/Underinsured coverage, also known as UM/UIM, provides coverage when you are injured in an accident caused by another person who either has no insurance or does not have enough insurance to cover your damages.

Loss Of Vehicle

Loss of Use coverage, also known as rental coverage, provides reimbursement for rental expenses associated with having an insured vehicle repaired due to a covered loss.

Car Towing Insurance

Car Towing coverage is also known as Roadside Assistance coverage. Traditionally, automobile insurance companies have agreed to only pay for the cost of a tow that is related to an accident that is covered under the automobile policy of insurance. This had left a gap in coverage for tows that are related to mechanical breakdowns, flat tires and running out of gas. To fill that void, insurance companies started to offer the Car Towing coverage, which pays for non-accident related tows.

If you are interested in obtaining more information or an auto quote, contact us.

Contact Bryan Insurance today at either our Moundsville office on 304.845.0121, or our Wheeling office on 304.233.5907 and let an experienced insurance professional discuss your insurance options with you.