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Five Primary Auto Insurance Coverage

Five Primary Auto Insurance CoverageAuto Insurance covers the financial loss of your vehicle in the case of any incident. It protects you from bearing the loss whenever there is a sudden damage or misfortune event like an accident. However, there are other primary auto insurance coverage. 

In other words, there are five primary incidents an auto insurance covers. Here are the types of auto insurance and some details on them:

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Personal Injury Protection (PIP) Insurance

In this scenario, the insurance covers medical bills related to the vehicle. For instance, the PIP comes into play when you or another passenger gets hurt in the car. It covers any resulting medical bills in the incident. 

Read Also:  Short-Term Health Insurance
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Also, it covers the work wages of the insured. It applies when a passenger gets hurt such that the person cannot work. Sadly, it also covers funeral expenses when there is a loss of life.

Bodily Injury (BI) Liability Insurance

Like the type above, this insurance covers any form of a bodily wound when there is an accident. However, in this case, the contract works only for someone else when you’re at fault in the incident. As long as you or anyone else appears to be the driver on the policy, it applies to such people.

Collision Coverage

In an incident where there is a collision with anything from another vehicle to stationary objects, this coverage comes in. However, it pays for the damage to your car. For instance, if your vehicle rammed into a tree or fence, it covers any dents and cracks.

Read Also:  Long-Term Disability Insurance Benefits

Personal Damage (PD) Liability Insurance

Similar to the one above, this coverage applies when there is a collision with someone else’s vehicle or property. However, in this case, it ensures the person’s property rather than yours.

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Comprehensive Coverage

This type is overall primary auto insurance coverage for any incident from loss of vehicle to theft, etc.

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