Five Types of Car Issues: What Does Auto Insurance Cover?

Driving on American roads involves numerous risks, ranging from reckless drivers to aggressive animal encounters. Another risk motorists must consider is mechanical failure.

The average American drives 14,263 miles per year. With so much mileage under the hood, your car or truck will experience at least one automotive issue. When that time comes, an auto insurance policy may not cover the total cost of your repairs.

What does auto insurance cover? Read on to learn more.

1. What Does Auto Insurance Cover? Collision Damage

If a policyholder is in an accident, their insurance company typically pays for the replacement or repair of their vehicle minus any deductible amount. A wide range of collision damage covers are available, and coverage limits may vary by jurisdiction. Depending on the policy, coverage may pay for repairs for damaged parts of the car, such as the body, engine, transmission, wheels, and brakes.

2. Liability Coverage

Liability coverage is a type of coverage offered through most insurance providers. It protects drivers, passengers, and bystanders against financial loss and damages from a car accident. This coverage will cover the medical expenses of anybody involved and any property damages resulting from the accident.

Sometimes, it will even cover legal defense costs and judgments beyond the driver’s initial policy limits. It is wise to get as comprehensive coverage and liability coverage as possible. You won’t have to bear the financial strain of medical bills and legal fees arising from an accident.

3. Comprehensive Coverage

Comprehensive coverage is an essential part of a car owner’s insurance policy. It pays out if the car is stolen, in an accident, or damaged by something the owner couldn’t have prevented.

It pays for fixing or replacing a vehicle injured in an accident. It also pays for other types of loss or damage to the policyholder’s car, like when it is stolen, burned, or damaged by a natural disaster. 

4. Medical Coverage

When an accident occurs, auto insurance pays for medical costs associated with the accident, such as doctor visits, hospital stays, and medications. This coverage can also help with lost wages if the injured party cannot work.

Auto insurance covers rehabilitation expenses, including physical therapy, occupational therapy, and psychological counseling. 

5. Uninsured Motorist Coverage

Uninsured motorist coverage pays for injuries or damage to property caused by a driver without car insurance coverage. A hit-and-run driver is also covered with Uninsured Motorist (UM) Coverage. Uninsured Motorist Coverage will also protect you if you are a pedestrian, riding a bike, or are in a car that isn’t insured.

Your insurance company pays for the coverage, so any other drivers or passengers hurt in the accident who have the same insurance company as you will also be covered. Click here to learn more about how to avail this type of coverage. 

Learn What Auto Insurance Covers

What does auto insurance cover? Car issues are a significant hassle, but luckily auto insurance often covers many of them. Review your policy to determine what’s covered and ensure you’re always prepared for an emergency.

Knowing what to expect and how to protect your vehicle best will keep you safe. Contact an auto insurance specialist today to set up the best policy for you and your car.

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